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FAST FOOD MINI CASE: Speedy Taco Is a Tex-Mex Fast

question 14

Multiple Choice

FAST FOOD MINI CASE: Speedy Taco is a tex-mex fast food chain that keeps costs down by only serving its food through drive-through windows. In response to increasing concern about obesity in America, Speedy Taco introduced the Speedy Chicken, a grilled chicken taco, as a healthy alternative to its tasty all-beef Speedy Taco. In addition to chicken and beef tacos, Speedy's menu also includes Speedy Burritos and Speedy Mexican Pizzas. Hoping to capitalize on the popularity of the Speedy brand, Continental Foods pays a fee to Speedy Taco in return for the ability to put the Speedy name on its line of salsa and tortilla chips sold to consumers through grocery stores. To entice consumers to try its salsa and chips, Continental Foods set up sampling booths at the front of the chip-and-dip aisles at grocery stores nationwide. Consumers that sampled the chips and salsa were given coupons toward the purchase of Continental Foods' Speedy Salsa and Speedy Tortilla Chips. Continental also printed a discount coupon for salsa on the back of every bag of tortilla chips.
-In the FAST FOOD MINI CASE, when Speedy Taco allows Continental Foods to put the Speedy name on its line of salsa and tortilla chips for sale through grocery stores, Speedy Taco is engaging in ________.

Definitions:

Year 2

Typically refers to the second year of operation, reporting, or analysis within a given context, such as fiscal years, project timelines, or investment periods.

Return On Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Dividend Payout Ratio

The percentage of net income that a company pays out to its shareholders as dividends, indicating how much money a company returns to shareholders versus retaining.

Price-Earnings Ratio

A measure of a company's current share price relative to its per-share earnings.