Seeking to Stop Declining Sales for an Established Mouthwash, a Sales

question 228

Multiple Choice

Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the "new" product. The Federal Trade Commission would:

• A) be concerned about the possibility of the firm getting a monopoly.
• B) allow the company to call the product "new" for only six months.
• C) probably not approve of this at all because the product doesn't meet the FTC's definition of "new."
• D) allow the promotion effort if it felt that consumers would think the coloring made it "new."
• E) none of these alternatives is correct.

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Definitions:

Accounts Receivable

Amounts owed by customers to a company for goods or services provided on credit.

Income Statement

An account that tracks a business's financial transactions, including income and expenditures over a designated timeframe, leading to a final profit or loss.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing shares, taking out loans, and paying dividends.

10-Year Bond

A debt security issued by governments or corporations with a fixed interest rate and maturity of ten years.