Until the Mid-1990s,MGP Ingredients,Inc

question 17

Multiple Choice

Until the mid-1990s,MGP Ingredients,Inc.,sold ethanol and animal feed.A steep drop in its sales led the company to focus on developing the first low-carb proteins and starches.The company was able to use existing manufacturing equipment to develop these food additives in response to the growing popularity of the Atkins Diet and similar food regimens.The realization that MGP could use the popularity of the Atkins Diet as a catalyst for success would have occurred in which stage of the new-product development process?

• A) screening and concept testing
• B) establishing the new-product strategy
• C) exploring opportunities
• D) developing a business analysis
• E) the building of a prototype

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Definitions:

Eurocurrency

Currency deposited by national governments or corporations in banks outside their home market, primarily used for lending, borrowing, and investing internationally.

Political Risk

The risk of losing money due to political instability or changes in government policy affecting an investment.

American Options

A type of options contract that allows the holder to exercise the option at any time before the expiration date.

Capital Budgeting

The process of evaluating and selecting long-term investments that are consistent with the firm's goal of maximizing owner wealth.