When Used as Part of an Overall New Product Development

question 167

True/False

When used as part of an overall new product development strategy, market penetration involves improving the quality of existing products, rather than modifying them, to increase sales.

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Definitions:

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used but not yet paid for.

Accounts Payable

The amount of money owed by a company to its creditors for goods and services purchased on credit, typically due within a short period of time.

Equivalent Annual Cost

A cost calculation method that is used to compare the cost effectiveness of different investments or projects with different lifespans.

Tax Shield

A deduction allowed by the tax laws to reduce taxable income, thus lowering the overall taxes owed by an individual or an organization.