Why Are Business Firms Interested in the Development of New

question 55

Multiple Choice

Why are business firms interested in the development of new products?

• A) The federal government encourages every product manufacturer to spend 1% of revenue on new product development.
• B) New products are necessary to stay in business.
• C) New products keep the warranty and service departments busy.
• D) New products provide the fun that marketing managers need.
• E) Product development provides an opportunity for large tax write-offs.

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Definitions:

Investment Policy Statement

A document that outlines an individual's or entity's investment objectives and strategies.

Relevant Constraints

Factors or limitations that affect the choices available to a business or individual when making decisions.

Investment Guidelines

Rules or criteria laid out by an investor or fund manager to guide the selection and management of investments.

Money Market Accounts

Financial accounts that typically offer higher interest rates compared to savings accounts, often used for short-term financial needs.