Which of the Following Best Describes a Private Label Brand

question 1

Multiple Choice

Which of the following best describes a private label brand?

• A) A retailer uses packaging as a form of advertising.
• B) A retailer develops a brand name and has a manufacturer put it on a product.
• C) A manufacturer puts its name on an unrelated product for a fee.
• D) A brand name is used throughout a series of products made by the same manufacturer.
• E) A brand is reintroduced in a new, often global, market.

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Definitions:

Net Present Value

A calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Cash Inflows

Money coming into a business from various sources, including sales, financing, and investments.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Total Cost Approach

The total cost approach considers all possible costs associated with a decision or project, from production to shipping, to evaluate profitability thoroughly.