An Apparel Manufacturer Decides to Create a Line of T-Shirts

question 164

Multiple Choice

An apparel manufacturer decides to create a line of t-shirts depicting the most popular soft drinks on the market. The images would include Coke, Pepsi, Sprite, Mountain Dew, and Dr. Pepper. What would this venture involve?

• A) line extension
• B) brand extension
• C) brand licensing
• D) brand marking

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Definitions:

Straight-Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal installment.

Interest Expense

Expenses related to an entity borrowing money throughout a specific period.

Carrying Value

The book value of assets and liabilities as recorded on the balance sheet, considering factors like amortization, depreciation, and impairment.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its current income.