When a Corporate Name Is Attached to a Product to Enter

question 32

Multiple Choice

When a corporate name is attached to a product to enter into an entirely new market segment, for example, Honda lawnmower and Toyota Lexus, it would be an example of a

• A) multibranding strategy.
• B) franchise extension.
• C) dual branding strategy.
• D) line extension.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, thereby preparing the accounts for the next period.

Depreciation Expense

is the charged amount for a particular period for the reduction in value of tangible assets due to usage and passage of time.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, representing the wear and tear on the asset over time.

Balance Sheet Credit

Refers to any credit entry recorded in the balance sheet, indicating an increase in liabilities or equity or a decrease in assets.