Are the two ways firms can obtain new products. A. New product development and existing product modification B. Acquisitions and new product development C. New product development and external research and development D. Mergers and acquisitions E. Acquisitions and external research and development

B. Acquisitions and new product development

Explanation:

Firm obtains new products in 2 ways:

*Acquisition- Here, company buys a whole company, a patent, or a license to produce someone else's product.

*New product development:

Firms create a new product with product improvements, through Research and Development. This new product is a key source of growth to firms or companies and it also creates new solutions for customer's lives.

B. Acquisitions and new product development.

Explanation:

Companies can obtain new products when they acquire other companies. In the process of acquiring another business outfit or organization, a company can obtain new products.

Consider a situation where Toyota acquires the company that manufactures Mercedes; in this case Toyota would also acquire the products that Toyota are known for to their range of products too simply by buying the company - Mercedes.

Again, a company can obtain new products during product development. In this case, a company that was producing a particular product or is known for the production of certain products can also decide to start developing and producing new products.

This is certainly not the same as product modification where organizations simply modify the products that they were formerly producing to enhance customer satisfaction. In new product development, companies start afresh to make or manufacture new products that they weren't formerly known for producing.