The year after a company whose success depends on product innovation has a profitable year, it invests more cash in its research and development department to attempt to generate innovations that can ensure future success. Therefore, companies whose success depends on product innovation should generate more innovations during the years following profitable years of business than during years following unprofitable years of business. Which of the following, if true about a company whose success depends on product innovation during the year after a profitable year, casts the most serious doubt on the conclusion drawn above?
a. Its employees ask for higher wages than they do at other times.
b. Its management participates more in research and development and makes process alterations.
c. Its research and development team members propose more project ideas that the company does not have time to act on than usual.
d. Its management increases monetary team rewards for successful innovation.
e. Its innovations increase in quantity, but have a higher rate of failure when applied to the market.
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