Which of the Following Statements About Line Extension Is True

question 212

Multiple Choice

Which of the following statements about line extension is true?

• A)A line extension is used with multibranding.
• B)There are no risks associated with a line extension strategy.
• C)When the Clorox Company joins with Kroger supermarkets to advertise Clorox products, it is an example of a line extension.
• D)A line extension is used with multiproduct branding.

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Definitions:

FASB

Stands for Financial Accounting Standards Board, which is responsible for establishing and improving financial accounting and reporting standards in the United States.

Note Receivable

A written promise to receive a specific amount of money at a future date.

Cash To Be Received

Expected cash inflows from various sources, such as sales, loans, and investments, not yet received but anticipated in the future.

Interest Rate

The percentage of the loan amount charged to the borrower as interest, usually presented as an annual rate.