The Chances of Success for a New Product Are Significantly

question 78

Multiple Choice

The chances of success for a new product are significantly increased if

• A) the company sets goals that both flexible and adaptable.
• B) objectives are set for the product itself and target market segments are identified for it.
• C) at least 25 percent of the initial budget includes advertising and promotional expenditures.
• D) all initial production, distribution, and promotion are done in-house where management can exert the greatest quality control.
• E) the firm outsources those elements of production, distribution, or promotion in which it has the least expertise.

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Definitions:

Covenant Not to Compete

A clause in an employment or business agreement that prohibits one party from competing against another for a certain period and in a specific geographic area.

Reasonableness

A standard of fairness, appropriateness, and rationality often used in legal and ethical judgments.

Goodwill

An intangible asset reflecting the value of a company's brand, customer relations, employee morale, and other non-physical assets.

Enforce

To compel observance of or obedience to a law, rule, or obligation.