Scenario 10.4 Use the Following to Answer the Questions

question 15

Multiple Choice

Scenario 10.4
Use the following to answer the questions.
When Silk Soymilk began packaging its chocolate milk in single-serving sizes, the company chose drink boxes that did not need refrigeration. The boxes were only sold in shrink-wrapped sets of six. Single boxes were not available at grocery stores or convenience markets. Once the Silk chocolate product was selling well, they also began offering the Silk Soymilk vanilla flavor in the same type packaging. The Silk Soymilk brand, logo, and look of the boxes were the same as its larger half-gallon versions. The only difference in packaging style was the brown color for chocolate milk and the color white for vanilla.
-Refer to Scenario 10.4. Which of the following is not a function of the packaging strategy chosen by Silk Soymilk?

• A) It protects and preserves the product.
• B) It offers convenience to customers.
• C) Its size and shape help make storage easier.
• D) It is harmful to the environment.
• E) It most likely appeals to children and those with active lifestyles.

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Definitions:

Bank Loan

A type of loan provided by banks to individuals or businesses with an agreement to repay the borrowed amount along with interest over a specified period.

Operating Activities

business activities directly related to producing and delivering goods and/or services, which are the primary source of revenue for the company.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted into cash in the upcoming year.

Borrowing

the act of obtaining funds from another party, often a financial institution, with the promise of repayment plus interest at a future date.