Your firm has a new product concept that seems to be a "sure winner." You have estimated that the cost of development is $1 million that the company does not have. As a result, this "sure winner" does not get out of the idea stage. This is an example of ________, which is one of the factors hindering new product development.
A) corporate culture
B) cost of development
C) faster required development times
D) shortages of new ideas
E) capital shortage

Question

Quizplus · Accepted Answer

The scenario describes a situation where the cost of development is hindering the new product concept from moving forward. This is a clear indication of a capital shortage. Option B "cost of development" is also partially correct, but it only provides a partial explanation and does not encompass the broader issue of lack of available funding.

Your Firm Has a New Product Concept That Seems to Be