All of the Following Are True About Product Line Extensions

question 242

Multiple Choice

All of the following are true about product line extensions except which?

• A)This strategy can result in lower advertising and promotion costs.
• B)A risk that comes with product line extensions is that sales of an extension may come at the expense of other items in the company's product line.
• C)A product line extension raises the level of brand awareness.
• D)Line extensions work best when they provide incremental company revenue by taking sales away from competing brands.
• E)Product line extensions involve using a current brand name to enter a different product class.

Identify the appropriate usage of jargon, slang, and cliches in business communication.

Demonstrate knowledge of the role of typography in business document design.

Appreciate the importance of white space in designing readable business documents.

Understand the components and purposes of financial statement analysis.

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Definitions:

Asset

Resources owned by a company or individual that are expected to bring future economic benefits.

Liability

A financial obligation of a business that it is required to repay in the future.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing what the owners own outright in the company.

International Standards

Guidelines and specifications established to ensure consistency and quality in products, services, and processes worldwide.