Bisky, a Newly-Founded Biscuit Company, Is Developing Its First Product

question 188

Multiple Choice

Bisky, a newly-founded biscuit company, is developing its first product, Jamz. It intends to the sell the product as a nutritious alternative to other biscuits. It markets the product with the tagline "A healthy snack for a healthy you." Which of the following is true of this scenario?

• A) Jamz should contain a secondary package in addition to the first package.
• B) The Food and Drug Administration (FDA) will verify Bisky's claims that Jamz is a nutritious alternative to other biscuits.
• C) Branding ethics will prevent Bisky from using the tagline on Jamz's packaging.
• D) The marketing strategy adopted by Bisky demands that it include details of the health benefits provided each ingredient on the product label.
• E) Jamz's label should contain details of the country of origin for individual ingredients.

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Definitions:

Bonds Payable

Long-term liabilities on a company's balance sheet, representing money owed to bondholders that must be repaid at a future date.

Bond Redemption

Bond redemption is the process of repaying the principal amount of a bond at or before its maturity date by the issuer.

Carrying Value

Also known as book value, it is the value of an asset as shown on the balance sheet, calculated as the original cost minus accumulated depreciation.

Premium on Bonds Payable

The additional amount over the face value for which bonds are sold, reflecting the market's perception of lower risk or higher interest compared to the market rate.