All of the Following Statements Regarding Package Size and Color

question 23

Multiple Choice

All of the following statements regarding package size and color are true EXCEPT:

• A) consumers believe that larger package sizes offer lower unit costs.
• B) consumers may use the contents of smaller packages more sparingly.
• C) package colors connote meanings to consumers.
• D) consumer perceptions of products are unaffected by a change in package color.
• E) brand identification simplifies purchase for the consumer.

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Definitions:

Debt-Equity Ratio

A marker indicating the relative financing tactics of using debt and equity in company assets.

Return On Assets

A financial ratio indicating the profitability of a firm relative to its total assets, demonstrating how efficient a company is at using its assets to generate earnings.

Return On Equity

A financial performance metric determined by dividing net income by shareholders' equity, showcasing the efficiency of management in utilizing the company's assets to generate profits.

Times Interest Earned Ratio

A financial metric indicating how well a company can meet its interest obligations based on current earnings before interest and taxes.