A firm may approve too many new product projects if:
A)simple financial hurdles are not the only criterion.
B)resource constraints are included in NPV calculations.
C)management does not overemphasize small,quick-hit projects.
D)low-quality work reduces the quality of information used for decision making.

Question

Quizplus · Accepted Answer

If the quality of work is low, the resulting information may not be accurate, leading to mistaken decisions and potentially approving too many new product projects. Options A, B, and C are all measures to prevent approving too many projects, rather than factors that contribute to over-approval.

A Firm May Approve Too Many New Product Projects If