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Northern Lights Electronics Just Completed Plans to Distribute Its New

question 288

Multiple Choice

Northern Lights Electronics just completed plans to distribute its new tablet. The product has several unique features that differentiate it from competitor products. The marketing team plans to begin a roll-out with ____________ to only one traditional retailer for the first two months. This strategy will give consumers the perception of the product's stand-out personality and increase demand. Marketing will proceed with _______________ for the next four months, where it plans to distribute to three other retailers, as well. For the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. The marketing team is confident that the tablet will cycle through the first three stages of its product life cycle quickly. As the tablet reaches maturity during the second half of its first year in the market, it is good strategy to proceed with ______________, as described above.

Definitions:

Return on Assets

A profitability ratio that measures how efficiently a company is using its assets to generate earnings.

Return on Debt

A measurement of a company's effectiveness in generating earnings from its debt, showing how well a company uses borrowed funds.

Cost of Equity

The return that investors expect for providing capital to a company, effectively the compensation for the risk of investing in the company.

Debt-Equity Ratio

An indicator of a business's financial risk, computed by dividing the total amount of its liabilities by the equity owned by shareholders.