Pepsi True Is a New Cola from Pepsi-Cola That Is

question 74

Multiple Choice

Pepsi True is a new cola from Pepsi-Cola that is sweetened with a combination of sugar and stevia leaf extract,resulting in a soft drink with the same flavor of Pepsi but only 60 calories.A potential showstopper for this product is likely to be

• A)a lack of advertising on television.
• B)that mid-calorie soft drinks such as Pepsi Next (2012)have not been successful in the past.
• C)a lower profit margin due to the added costs of expensive ingredients.
• D)cannibalization of the company's existing sodas.
• E)the use of a combination of sugar and stevia leaf extract.

---

Definitions:

Gross Investment

represents the total amount spent on purchases of new capital and on replacing depreciated capital within an economy during a specified period.

Capital Stock

The total amount of physical, financial, and human assets used in the production of goods and services in an economy.

Proprietorships

Businesses owned and operated by a single individual, bearing full responsibility for its assets and liabilities.

Partnerships

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.