The Maker of Centrum Multivitamins Introduced Centrum Silver, a Vitamin

question 173

Multiple Choice

The maker of Centrum multivitamins introduced Centrum Silver, a vitamin designed specifically for older people.Centrum Silver is an example of a _____, a product that uses an existing brand name in an existing category but with a new formula.

• A)flanker brand
• B)line extension
• C)franchise extension
• D)product brand
• E)generic brand

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Definitions:

Bad Debts Expense

The portion of accounts receivable that a company does not expect to collect, recognized as an expense in financial accounting.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collected, which is used to reduce the total accounts receivable balance.

Cash Loan

A sum of money borrowed that must be paid back with interest.

Interest Revenue

Earnings received from investments in interest-bearing assets like loans, bonds, and savings accounts.