MLManufacturers Inc

question 9

Multiple Choice

M.L.Manufacturers Inc.is an American clothes manufacturing firm that sells women's fashion apparel under the brand name DressChic.After extensive market research,the firm introduces a line of children's clothes under the brand name Mischief and a line of affordable work wear for women under the brand name DressSmart.In this example,M.L.Manufacturers Inc.uses which of the following strategies?

• A)a vertical brand-line extension strategy
• B)a horizontal brand-line extension strategy
• C)a new product-market brand extension strategy
• D)a cobranding strategy
• E)a product bundling strategy

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Definitions:

Government Borrowing

The method by which a government finances its expenditure by issuing debt instruments, such as bonds.

Public Expenditures

Refers to the spending of government funds on goods, services, and infrastructure for the public benefit and economic stability.

Crowding Out

A situation in which increased public sector borrowing leads to a reduction in private sector spending, either because of higher interest rates or because available financial resources are used by the government.

Governmental Purchases

Expenditures made by the government for goods and services that are used to provide public services.