(ii) can improve existing products as well as developing completely new products
x
(iii) has been less important for firms manufacturing computers to meet an industry standard than for those firms developing the next generation of computers
x
(iv) is always undertaken under contract by specialist external consultancies
x
Rationale: R & D tends to be concerned with product research (not market research), and many organisations have internal R & D functions.
Pitfalls: Be aware of the difference between product and market research.
Ways in: If you were able to rule out statement (i), you were only left with two options to choose from - and you should be able to rule out statement (iv) if you know any organisations with an internal R & D department, leaving you with the correct option.
