New projects or products can have an indirect effect on the firm as well as a direct effect.Which of the following appears to be an indirect effect of launching a new product?
A)Additional working capital is required
B)The sales force will need to be increased
C)Sales of our similar product will decline
D)Additional machinery must be purchased

Question

Quizplus · Accepted Answer

The decline in sales of a similar product is an indirect effect of launching a new product because it is a result of the new product competing with the similar product, rather than a direct effect of the launch itself. Options A, B, and D are all direct effects because they involve specific actions or expenses directly related to the launch of the new product.

New Projects or Products Can Have an Indirect Effect on the Firm