A Product Is Revised and New Features Are Added in Order

question 9

Multiple Choice

A product is revised and new features are added in order to focus the market on the product and to provide it with a renewed competitive advantage.This approach to extend the product life cycle is called:

• A)harvesting a product.
• B)finding new uses for a product.
• C)targeting current users with extended usage strategies.
• D)repositioning a product.

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Definitions:

Credit Sales

Sales for which payment is not received immediately, but the buyer is extended credit to pay at a later date, affecting a company's cash flow and revenue recognition.

COGS

Cost of Goods Sold, which refers to the direct costs attributable to the production of the goods sold by a company.

Effective Annual Interest Rate

The actual return on an investment or the real cost of a loan, accounting for the compounding of interest over a year.

Line of Credit

A financial arrangement providing the borrower the right to draw funds up to a specified limit at any time within a fixed period.