The Product Development Team Cannot Understand Why the Product They

question 3

True/False

The product development team cannot understand why the product they developed a year ago is not selling. The team leader refuses to think the product is becoming outdated and is unwilling to consider new alternatives to the product. One member, however, suggested further market testing to gather additional information. The others, intimidated by the team leader, hold onto the notion that the product is worthwhile and refuse to acknowledge that it might need enhancement. This is an example of groupthink.

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Definitions:

Amortization

The process of gradually paying off a debt over a period of time through planned, periodic payments of principal and interest.

Bond Discount

The difference between the face value of a bond and the price for which it is sold, when the bond is sold for less than its face value.

Operating Activities

Operating activities relate to the primary, day-to-day activities of a business such as selling products, manufacturing, and expenses related to administration.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.