Which of the Following Statements About the Idea Evaluation Step

question 136

Multiple Choice

Which of the following statements about the idea evaluation step is FALSE?

• A)Companies can often estimate likely costs,revenue,and profitability at this stage.
• B)Product planners can compare the cost advantages and limitations of a new product with those currently being used.
• C)Product tests with customers are used to revise the early versions of the product.
• D)This step should gather enough information to help decide whether there is an opportunity.

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Definitions:

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Partnership

An authorized business structure where two or more partners manage and share in the profits.

Amount Owed

The total money that is due to be paid to a lender or creditor by the borrower.

Accounting Equation

The fundamental principle of accounting that states assets are equal to the sum of liabilities and owner's equity.