If the Company That Produces Garnier Fructis Shampoo and Conditioner

question 144

Multiple Choice

If the company that produces Garnier Fructis shampoo and conditioner were to introduce Garnier Fructis dryer sheets with the same scent, this would be called ____ branding.

• A) brand-extension
• B) licensed
• C) family
• D) individual
• E) new-product

---

Definitions:

Branch Decision Tree Analysis

A systematic, graphical approach to evaluating all possible alternatives in decision-making, representing outcomes, resources, costs, and utility.

Cost of Capital

A rephrasing: The minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of capital.

NPV

Net Present Value; a calculation used to assess the value of a project or investment by determining the present value of future cash flows.

Certainty Equivalent Factors

Refers to adjustments made to uncertain (risky) cash flows to equate them to certain cash flows, used in investment decision-making.