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,which 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.

Question

Quizplus · Accepted Answer

The situation described in the scenario is an example of capital shortage, which is a factor hindering new-product development. Despite having a new-product concept that seems to be a sure winner, the firm cannot pursue its development due to the lack of financial resources.

Your Firm Has a New-Product Concept That Seems to Be