Which of the following would fall under the definition of cannibalism as it applies to capital budgeting?
A) If a firm offered a 'low-fat' version of a current product and sales of that new product were expected to reduce sales of the current version.
B) The eating of the flesh of an animal by another animal.
C) If a competitor were to offer a similar or identical product to one your company already offers and this would lead to reduced sales of your product.
D) Both (a) and (c) are true.
E) None of the above is true.
Correct Answer:
Verified
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