When a Company Becomes Aware That a New Product Is

question 232

Multiple Choice

When a company becomes aware that a new product is being test marketed by one of its competitors in St. Louis, it decides to create a similar product and rush it to market. This company can be described as a(n) :

• A) copycat.
• B) innovator.
• C) me-too imitator.
• D) first mover.

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Definitions:

Medical Center

A comprehensive health care facility that provides a wide range of medical services including diagnostics, treatment, and surgery.

Corporation

A corporation is a legal entity that is separate and distinct from its owners, authorized to act as a single entity and recognized as such in law for the purposes of conducting business, borrowing funds, suing, and being sued.

Accounts Payable

Money owed by a company to its creditors for goods or services that have been delivered but not yet paid for.

Fair Value

The estimated market price of an asset or liability, based on current conditions and the willing buyer-seller principle.