Describe the potential ethical issues in the new-product development process.
What will be an ideal response?
Companies must follow the Fair Trade Commission's (FTC) definition of a new product. A company cannot make small changes to a product and then advertise the product as substantially changed or different. There are also ethical issues with a business that chooses not to develop new and possibly better products until a present product becomes obsolete or a patent expires. Also, companies may use the new-product development process to make existing products obsolete, which is referred to as planned obsolescence.
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Columbus Industries makes a product that sells for $25 a unit. The product has a $5 per unit variable cost and total fixed costs of $9,000. At budgeted sales of 2,000 units, the margin of safety ratio is:
A. 22.5%. B. 77.5%. C. 10%. D. None of these.
What is an example of institutional collectivism?
a) Helping out your neighbor b) Social welfare payments c) Institutions working together d) Individuals being assertive
Parker agrees to sell to Thompson 500 bushels of soybeans at $9.50 per bushel. Without the fault of Parker or Thompson, 200 bushels are destroyed. Thompson must take the remaining 300 bushels and pay Parker $2,850
Indicate whether the statement is true or false
The trade terms "FOB" and "CIF" are defined by which of the following: A) Incoterms
B) Uniform Commercial Code. C) The Revised American Foreign Trade Definitions. D) All of the above.