Which of the Following Seems to Be a Major Determinant

question 46

Multiple Choice

Which of the following seems to be a major determinant of a new venture's success?

• A)Large-scale entry into the target industry designed to build market share, even when such entry involves significant short-term losses
• B)Cautious small-scale entry into the target industry so that the company can assess the probable outcome of the venture without losing too much money
• C)A low level of integration between the marketing and the research and development functions of the venturing company
• D)Supporting many new venture projects in the hope that one will succeed
• E)Killing the new venture if it does not show a profit after the end of the third year

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Definitions:

Marketing Costs

Expenses related to promoting and selling a product or service, including advertising, market research, and distribution.

Unit Sales Price

The cost at which individual units of a product are sold to consumers or retailers.

Average Revenue

Average revenue is the amount of money that a company receives per unit of goods or services sold, calculated by dividing total revenue by the number of units sold.

Percentage of Sales Budgeting

A method of budgeting marketing expenditures based on a fixed percentage of past or forecasted sales.