Why Should Companies Develop and Introduce New Products

question 75

Multiple Choice

Why should companies develop and introduce new products?

• A) To keep their product designers busy
• B) Because failing to do so can threaten the future success of the firm
• C) Because it is relatively inexpensive and therefore worth the time
• D) To replace deleted products so the broadness of the marketing mix remains unchanged
• E) Because new products are almost always successful

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Definitions:

Tax-Exempt Securities

Investments whose interest income is not subject to federal income tax, and in some cases, state and local taxes.

Residence Acquisition Debt

Mortgage debt incurred in acquiring, constructing, or substantially improving a principal residence, which is secured by the residence.

Fully Deductible

Expenses that can be subtracted in full from taxable income, reducing the total amount on which tax is calculated.

Adjusted Gross Income

involves a rephrased definition: it's the measure of income calculated from your gross income and allows for certain deductions, but before itemized or standard deductions.