The Forsite Company Is Screening Three New Product Ideas

question 20

Multiple Choice

The Forsite Company is screening three new product ideas.Resource constraints allow only one idea to be commercialized at the present time.The following estimates have been made for the five performance criteria that management feels are most important.If the five criteria are equally weighted,what are the best and worst alternatives?

• A)A is best,and B is worst.
• B)B is best,and C is worst.
• C)B is best,and A is worst.
• D)C is best,and A is worst.

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Definitions:

Dollar Amount

The value of something measured in units of currency, specifically U.S. dollars.

Preferred Stock

A class of stock that provides a specific dividend that is paid before any dividends are paid to common stock holders, and which typically has priority over common stock in the event of a liquidation.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of a company's profits and a right to vote on some corporate decisions.

Capital Stock

The total amount of stock that a company is authorized to issue, representing ownership in the company.