When Deciding on Which New Products to Develop, a Firm

question 59

Multiple Choice

When deciding on which new products to develop, a firm must devote people, time, and money to designing a new product. Because any firm has only limited resources, it

• A) should wait until its competitors develop a similar product before deciding on devoting resources to its own product development.
• B) is not able to develop more than one new product at a time.
• C) must be certain that the product it chooses to develop will be successful or it will not be able to stay in business.
• D) faces a trade-off because resources used to develop one product will not be available to develop another product.

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Definitions:

Discount Date

The date on which a payment is to be made earlier than its originally scheduled due date at a reduced rate.

Due Date

the specified date by which a payment, task, or project is to be completed or submitted.

Delivery Charge

A fee imposed for the service of delivering goods or services to a specified location, typically distinct from shipping charges by the directness of the service.

Purchasing Agent

An individual or entity responsible for buying goods and services for a company or organization.