Kellogg's Different Types of Cereals,each Targeted at a Different Type

question 12

Multiple Choice

Kellogg's different types of cereals,each targeted at a different type of user,are an example of multiple products aimed at multiple markets.Manufacturing these different cereals is clearly more expensive than producing one,but seems worthwhile if it serves customers' needs better,doesn't reduce quality or increase price,and:

• A)conforms to all union regulations.
• B)reduces the number of employees required.
• C)decreases the cost of the physical plant.
• D)adds to the manufacturer's sales revenues and profits.

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Definitions:

Par

The face value or nominal value of a bond, stock, or other financial instrument, typically the amount on which interest payments or dividends are calculated.

Zero-Coupon Bond

A debt security that does not pay periodic interest, instead being sold at a discount and maturing at face value, generating profit at redemption.

Interest Payments

The cash outflows that a borrower makes to a lender as a compensation for the use of borrowed funds.

Premium Bond

A bond that is trading above its par value in the financial markets.