Which of the Following Statements Is Correct

question 78

Multiple Choice

Which of the following statements is correct?

• A) According to a 1995 study, less than 80% of Canadian firms used the rule of NPV, but about 50% of firms used some form of discounted cash flow analysis.
• B) According to a 1995 study, less than 50% of Canadian firms used the rule of NPV, but about 79% of firms used some form of discounted cash flow analysis.
• C) According to a 1995 study, every Canadian firm used the rule of NPV, and about 80% of firms used some form of discounted cash flow analysis.
• D) According to a 1995 study, no Canadian firms used the rule of NPV, but about 79% of firms used some form of discounted cash flow analysis.

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Definitions:

Market Penetration

The extent to which a product or service is recognized and used by customers in a particular market.

Diversification

A strategy in finance and business development that involves entering into a variety of markets or developing a range of products to minimize risks.

Product Development

The process of creating, designing, and bringing a new product to market.

Market Development

Market development is a strategic effort to expand into new markets or segments, aiming to increase the customer base for a product or service.