Which of the Following Represents an Opportunity for Generating a New

question 111

Multiple Choice

Which of the following represents an opportunity for generating a new product?

• A)understanding the customer
• B)demographic change,such as decreasing family size
• C)changes in professional standards
• D)economic change,such as rising household incomes
• E)All of the above are such opportunities.

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Definitions:

Controllable Margin

A financial metric that represents the amount of profit or contribution margin that management can directly influence through its decisions.

Operating Assets

Assets that a business uses for its day-to-day operational activities to generate revenue, excluding investment and non-operational assets.

Return on Investment

A financial ratio that calculates the profitability of an investment by dividing the net profit by the initial cost of the investment.

Controllable Margin

The portion of profit or income that a manager can directly influence by controlling costs or increasing sales.