Test Marketing a New Product Is Expensive and Communicates Company

question 83

True/False

Test marketing a new product is expensive and communicates company plans to competitors prior to its full-scale introduction.

---

Definitions:

Basis

The difference between the spot price of an asset and its future price, or the cost basis of an investment.

Futures Price

The agreed price for the future delivery of assets in a futures contract.

Spot Price

The current market price at which a particular asset, like commodities, currencies, or securities, can be bought or sold immediately.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.