Which of the Following Is FALSE

question 56

Multiple Choice

Which of the following is FALSE?

• A)One year is the recommended minimum amount of time to test market a product.
• B)A controlled test market is also known as the forced-distribution test market.
• C)A market test is an example of a controlled experiment.
• D)Test markets can only be used to determine the sales potential of a new product or an improved version of an established product.
• E)None of these statements are false;they are all true.

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Definitions:

Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security at a specific price before a certain date.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating profitability.

Total Equity

The total of all ownership interests in a company, calculated as the difference between total assets and total liabilities; also known as shareholders' equity or owner's equity.