Multiple Choice Questions on Chapter 1: Introduction
1. The most important criteria for the economic success of a company depends on its:
a) ability to hire many employees
b) access to up to date technological resources
c) ability to identify customer needs and quickly create products at low cost to meet
those needs
d) none of the above.
Answer: C
2. Which of the following factors is holistically responsible for the economic success of a
business?
a) marketing
b) design
c) manufacturing
d) product development
Answer: D
3. There are _____ specific dimensions which are commonly used to assess the
performance of a product development effort.
a) five
b) six
c) seven
d) eight
Answer: B
4. Product quality is ultimately reflected in the __________ and the price that customers
are willing to pay.
a) development cost
b) development time
c) market share
d) development capability
Answer: D
5. The performance of a product development process can be assessed by:
a) product quality and cost
b) development time, cost and capability
c) both a and b
, d) none of the above
Answer: C
6. The success of the product development process of a company primarily depends on:
a) the company name
b) high performance, product quality and cost, development time, cost & capabilities
c) distribution partners
d) company’s net worth
Answer:
7. The success of the product development process of a company primarily depends on:
a) product quality and cost
b) development time and cost
c) development capabilities
d) all of the above
Answer: D
8. Sustainable product development demands:
a) that the products should be made using cheapest labor
b) ecologically sound use of resources and reduction of hazardous waste byproducts
c) that the business organizations should be not-for-profit
d) larger development costs and time
Answer: B
9. Product development is an interdisciplinary activity with three central functions. These
are:
a) Design, Marketing, and Manufacturing
b) Design, Sales, and Marketing
c) Marketing, Manufacturing and Sales
d) Design, Finance, and Manufacturing
Answer: A
10. One of the core teams of product development is:
a) Finance
b) Marketing
c) Advertising
d) Legal
Answer: B
,11. One of the core teams of product development is:
a) Finance
b) Advertising
c) Design
d) Legal
Answer: C
12. The core team of product development includes all of the following areas of expertise
except:
a) Finance
b) Manufacturing
c) Design
d) Marketing
Answer: A
13. The extended team may include the following area of expertise:
a) Marketing
b) Design
c) Legal
d) Manufacturing
Answer: D
14. The extended team does not include the following area of expertise:
a) Marketing
b) Finance
c) Legal
d) Sales
Answer: C
15. The most common development time period for the development of new products is:
a) About a year
b) 3-5 years
c) 6-9 years
d) Over 10 years
Answer: B
, 16. Which of the following factors is/are responsible for a product’s development cost?
a) Duration of the project
b) Number of people on the project team
c) Both a and b
d) none of the above
Answer: C
17. The product development team members usually gain satisfaction from:
a) creation of the product
b) a dynamic environment
c) budget enhancements
d) none of the above
Answer: B
18. Which of the following is not a challenge for product development?
a) the presence of high team spirit
b) to earn reasonable return on investment on the product.
c) the need to make product development decisions quickly and without complete
information
d) managing trade-offs to maximize the success of a product
Answer: A
19. Characteristics of a dysfunctional product development team includes
a) a lack of empowerment of the team
b) inadequate resources
c) a lack of cross-functional representation on the project team
d) all of the above
Answer: D
20. Which is the final phase of product development process?
a) System level design
b) Detail design
c) Testing and refinement
d) Production ramp-up
Answer: D
1. The most important criteria for the economic success of a company depends on its:
a) ability to hire many employees
b) access to up to date technological resources
c) ability to identify customer needs and quickly create products at low cost to meet
those needs
d) none of the above.
Answer: C
2. Which of the following factors is holistically responsible for the economic success of a
business?
a) marketing
b) design
c) manufacturing
d) product development
Answer: D
3. There are _____ specific dimensions which are commonly used to assess the
performance of a product development effort.
a) five
b) six
c) seven
d) eight
Answer: B
4. Product quality is ultimately reflected in the __________ and the price that customers
are willing to pay.
a) development cost
b) development time
c) market share
d) development capability
Answer: D
5. The performance of a product development process can be assessed by:
a) product quality and cost
b) development time, cost and capability
c) both a and b
, d) none of the above
Answer: C
6. The success of the product development process of a company primarily depends on:
a) the company name
b) high performance, product quality and cost, development time, cost & capabilities
c) distribution partners
d) company’s net worth
Answer:
7. The success of the product development process of a company primarily depends on:
a) product quality and cost
b) development time and cost
c) development capabilities
d) all of the above
Answer: D
8. Sustainable product development demands:
a) that the products should be made using cheapest labor
b) ecologically sound use of resources and reduction of hazardous waste byproducts
c) that the business organizations should be not-for-profit
d) larger development costs and time
Answer: B
9. Product development is an interdisciplinary activity with three central functions. These
are:
a) Design, Marketing, and Manufacturing
b) Design, Sales, and Marketing
c) Marketing, Manufacturing and Sales
d) Design, Finance, and Manufacturing
Answer: A
10. One of the core teams of product development is:
a) Finance
b) Marketing
c) Advertising
d) Legal
Answer: B
,11. One of the core teams of product development is:
a) Finance
b) Advertising
c) Design
d) Legal
Answer: C
12. The core team of product development includes all of the following areas of expertise
except:
a) Finance
b) Manufacturing
c) Design
d) Marketing
Answer: A
13. The extended team may include the following area of expertise:
a) Marketing
b) Design
c) Legal
d) Manufacturing
Answer: D
14. The extended team does not include the following area of expertise:
a) Marketing
b) Finance
c) Legal
d) Sales
Answer: C
15. The most common development time period for the development of new products is:
a) About a year
b) 3-5 years
c) 6-9 years
d) Over 10 years
Answer: B
, 16. Which of the following factors is/are responsible for a product’s development cost?
a) Duration of the project
b) Number of people on the project team
c) Both a and b
d) none of the above
Answer: C
17. The product development team members usually gain satisfaction from:
a) creation of the product
b) a dynamic environment
c) budget enhancements
d) none of the above
Answer: B
18. Which of the following is not a challenge for product development?
a) the presence of high team spirit
b) to earn reasonable return on investment on the product.
c) the need to make product development decisions quickly and without complete
information
d) managing trade-offs to maximize the success of a product
Answer: A
19. Characteristics of a dysfunctional product development team includes
a) a lack of empowerment of the team
b) inadequate resources
c) a lack of cross-functional representation on the project team
d) all of the above
Answer: D
20. Which is the final phase of product development process?
a) System level design
b) Detail design
c) Testing and refinement
d) Production ramp-up
Answer: D
