Which of the Following Best Describes When Johnson & Johnson

question 50

Multiple Choice

Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product?

• A) line extension
• B) brand extension
• C) brand dilution
• D) rebranding
• E) co-branding
• A line extension is the use of the same brand name within the same product line and represents an increase in a product line's depth.

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Definitions:

Cost Of Capital

The rate of return that a business must achieve to meet the expectations of its investors and creditors, representing the opportunity cost of investing capital in a specific business.

IRR

The Internal Rate of Return; a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Salvage Value

The foreseen market valuation of an asset at the lifespan’s end.

Present Values

The now-value of a forthcoming financial amount or cash flow pattern, discounted at a fixed rate of return.