Although Caprice's Beverage Company Had Focused Only on Alcohol Products

question 121

Multiple Choice

Although Caprice's Beverage Company had focused only on alcohol products for the past two decades,the company is now considering entering the bottled iced tea arena as well.If Caprice's decides to enter the bottled iced tea arena,Caprice's would be using a __________ strategy.

• A)vertical integration
• B)concentric diversification
• C)conglomerate diversification
• D)concentration
• E)differentiation

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Definitions:

Consignor

The manufacturer in a consigned inventory arrangement.

Consignment

A business arrangement where goods are left in the possession of another party to sell, but the owner retains ownership until the goods are sold.

Days' Sales

Refers to the ratio that indicates how many days worth of sales a company has in inventory, providing insight into inventory management efficiency.

Inventory

An accounting term for goods and materials that a business holds for the ultimate goal of resale or repair.