Which of the Following Statements Best Explains Why Idea Screening

question 21

Multiple Choice

Which of the following statements best explains why idea screening may be the most important step of new product development?

• A) It increases the number of ideas generated.
• B) It provides an opportunity for the marketer to test the prototype in a simulated market.
• C) It helps forecast the products' sales and profits accurately for a specific period.
• D) It gives research and development team members an opportunity to gather consumer feedback.
• E) It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.

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Definitions:

Long-Term Assets

Are resources or investments owned by a company expected to provide value for more than one year, such as land, buildings, machinery, and intellectual property.

Guarantors

Individuals or entities that agree to be responsible for another's debt or obligations if the original party fails to meet its terms.

Loan Endorsers

Individuals or entities that support or guarantee the repayment of a loan, thereby assuming the risk if the original borrower fails to repay.

Commercial Banks

Financial institutions that offer services such as accepting deposits, providing business loans, and offering basic investment products.