Tangerine Inc

question 15

Multiple Choice

Tangerine Inc. differentiates its products by building a brand image, whereas Cloud Inc. does not rely on brand image to differentiate its products. Which of the following statements is likely to be true in this case?

• A)Tangerine is likely to rely on product features to attract customers.
• B)Tangerine is likely to use advertisements to differentiate its products.
• C)Cloud is likely to use promotional tools to increase market share.
• D)Cloud is unlikely to rely on reliability to boost sales.

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Definitions:

Subsidiary

A company controlled by another company, termed as the parent company, usually through majority share ownership.

Disclosure

The process of providing financial and other significant information about a company's operations, financial condition, and management to stakeholders.

Fair Market Value

The cost at which an asset would be sold in an open market scenario, involving a buyer and a seller who are both willing to transact and are well-informed about the essential details.

Goodwill

An intangible asset that arises when a company acquires another for a price higher than the fair value of its net identifiable assets.