Four Loko Is Obviously a Product That Relies on Peer

question 2

Multiple Choice

Four Loko is obviously a product that relies on peer pressure and self-image.Does this product depend on nonaspirational groups in influencing its consumers? Choose the best answer.

• A) No, Four Loko is entirely dependent on its athletic, herbal lifestyle image.
• B) Yes, drinking Four Loko separates its largely male athlete consumers from female college students.
• C) Yes, Four Loko uses legal wormwood extract and thus disassociates the product from drug addicts.
• D) Yes, groups perceived as unhealthy or social pariahs, such as drunken beer drinkers and hard core alcoholics.
• E) No, Four Loko relies more on the consumer achieving the ideal, athletic drinker self-image.

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Definitions:

Stockholders' Equity

The portion of a company's assets that belongs to shareholders after deducting liabilities, representing ownership interest.

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the company's profits or losses.

Retained Earnings

The segment of net profit held back by the business rather than being shared with its proprietors in the form of dividends.

Deferred Revenue

Income that has been received by a company for goods or services not yet delivered or performed, recognized as a liability on the balance sheet.