Refer to the Passage Below to Answer the Questions That

question 74

Essay

Refer to the passage below to answer the questions that follow.
Kraft is known for its cheese products, but the company also manufactures several consumer packaged goods products, such as mayonnaise, salad dressing, barbeque sauce, macaroni and cheese, and other types of food products sold in grocery stores. A large portion of Kraft's marketing communication budget is spent on incentives given to wholesalers and retailers to get the company's products to the consumers.
-What are the two primary roles of the type of promotion used by Kraft in this example?

---

Definitions:

Optimal Capital Structure

The most favorable mix of debt and equity financing that minimizes a company's overall cost of capital while maximizing its stock price.

Common Share Price

The market value of a single share of a company's common stock.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, usually with interest.

Equity

The value of an ownership interest in property, including shareholders' ownership in a corporation.