Which of the Following Statements Is Not True Regarding New

question 56

Multiple Choice

Which of the following statements is not true regarding new product development?

• A) New product development involves designing, producing, and selling new products as a means of increasing firm revenues and profits.
• B) When new product development is properly executed, there is tremendous upside potential.
• C) The key to successful new product development strategy is to develop products that aren't simply "me-too" products.
• D) In general, developing new products is a low-risk strategy.
• E) In many fast-paced industries, new product development is a competitive necessity.

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Definitions:

Retention Ratio

The share of net income that remains in the business instead of being paid out to shareholders in the form of dividends.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales and earnings without increasing its debt or equity.

Total Asset Turnover

A financial metric that evaluates how effectively a company can produce revenue from its assets by contrasting net sales with the average total assets.

Dividends Paid

Dividends paid are the portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.