My Learning Cart
?
Categories
Account

If a company allocates its budget primarily to marketing rather than research an

₹0.0
Login to Download
  • 📥 Instant PDF Download
  • ♾ Lifetime Access
  • 🛡 Secure & Original Content

What’s inside this PDF?

Question: If a company allocates its budget primarily to marketing rather than research and development, which of the following is a potential risk?

Options:

  1. Increased brand awareness.
  2. Short-term sales growth.
  3. Neglecting innovation and long-term growth.
  4. Higher customer engagement.

Correct Answer: Neglecting innovation and long-term growth.

Solution: 

Focusing on marketing at the expense of R&D can lead to neglecting innovation, which is a long-term risk, making option 2 the correct choice.

If a company allocates its budget primarily to marketing rather than research an

Practice Questions

Q1
If a company allocates its budget primarily to marketing rather than research and development, which of the following is a potential risk?
  1. Increased brand awareness.
  2. Short-term sales growth.
  3. Neglecting innovation and long-term growth.
  4. Higher customer engagement.

Questions & Step-by-Step Solutions

If a company allocates its budget primarily to marketing rather than research and development, which of the following is a potential risk?
  • Step 1: Understand the company's budget allocation. The company is spending more money on marketing than on research and development (R&D).
  • Step 2: Identify what marketing focuses on. Marketing is about promoting and selling products to customers.
  • Step 3: Identify what R&D focuses on. Research and development is about creating new products and improving existing ones.
  • Step 4: Consider the consequences of spending less on R&D. If the company does not invest in R&D, it may not innovate or create new products.
  • Step 5: Think about the long-term effects. Without innovation, the company may fall behind competitors and lose market relevance over time.
  • Step 6: Conclude that focusing too much on marketing can lead to neglecting innovation, which is a potential long-term risk.
  • Budget Allocation – The process of distributing financial resources among various departments or activities within a company.
  • Marketing vs. R&D – The balance between promoting products and developing new innovations, highlighting the importance of both for long-term success.
  • Innovation Risk – The potential negative impact on a company's ability to innovate and stay competitive if resources are not allocated to research and development.
Soulshift Feedback ×

On a scale of 0–10, how likely are you to recommend The Soulshift Academy?

Not likely Very likely
Home Practice Performance eBooks