Written Instruments, a Maker of Plastic Ballpoint Pens Targeted at School-Aged

question 46

Multiple Choice

Written Instruments, a maker of plastic ballpoint pens targeted at school-aged children, decided to market an additional line of pens. However, this small business was concerned that the introduction of a new ballpoint pen would reduce sales of the existing product in its current market niche. Therefore, Written Instruments created a high-quality, felt-tip pen targeted at business executives in order to expand sales. This company was employing a ____ product strategy.

• A) multiple products/one market
• B) multiple products/multiple markets
• C) one product/multiple markets
• D) modified product/multiple markets

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Definitions:

Financial Intermediaries

Institutions that act as middlemen between savers and borrowers, facilitating the flow of funds in the financial system.

Diversify Their Portfolios

The strategy of spreading investments among various financial instruments, industries, and other categories to minimize risk.

Credit Risk

The potential that a borrower will fail to meet their obligations in accordance with agreed terms.

Capital Resources

Economic assets used by businesses to produce goods and services, such as buildings, machinery, and equipment.