Which of the Following New Products Is the Best Example

question 214

Multiple Choice

Which of the following new products is the best example of the LOWEST level of risk from the company's point of view?

• A)adding Ball Park Beef Franks with Cheese to the Ball Park Franks line
• B)moving from production of land-line telephones to smartphones
• C)marketing the first Apple computer
• D)changing the formula from Coca-Cola to New Coke and then back to Coca Cola Classic
• E)offering online marketing classes rebranded under a new college name

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders but instead is reinvested in the business or used to pay off debt.

Net Income

Net income is the total earnings of a company after all expenses and taxes have been deducted from total revenue.

Dividends

Payments made to shareholders out of a corporation's earnings.

Shareholders

Owners of shares in a corporation, holding a portion of the company's stock and thus a claim on its assets and earnings.