A Large Number of Indian Families Own Two-Wheelers Because Four-Wheelers

question 33

Multiple Choice

A large number of Indian families own two-wheelers because four-wheelers are beyond their purchasing power.This inspired Tata Motors to begin R&D to develop an affordable car, Tata Nano.The company went back to the drawing board to rethink how best to design an affordable car for India.The selling price of this no-frills auto was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low-cost Indian labour.Nano is primarily aimed at the Indian domestic market where it provides an opportunity for new car ownership for people who would otherwise never own one.The above serves as an example of:

• A)product adaptation.
• B)product rebranding.
• C)product invention.
• D)brand extension.
• E)straight product extension.

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Definitions:

No-par Common Stock

Shares of common stock issued without a specified face value or par value, where the entire amount paid for the shares is considered legal capital.

Par Preferred Stock

A class of preferred shares issued at a designated face value, often affecting aspects of dividend payments and company equity structure.

Cash

Liquid funds available for use in the form of currency or bank balances.

Treasury Stock

Company-released shares that have been bought back, consequently lowering the overall available shares for trading.