A Small Electronics Company Manufactures a Line of Low to Moderate

question 12

Multiple Choice

A small electronics company manufactures a line of low to moderate quality stereo components that are distributed through wholesalers to mass-market retailers such as wal-mart.The electronics company has begun production of a small line of high quality, professional studio-model components.How should the small electronics company best distribute its new products?

• A)use its established channel
• B)distribute directly to mass market retailers
• C)distribute through agents who sell to specialty electronics stores who will feature the new line
• D)sell directly to specialty electronics stores who will feature the new line
• E)establish its own chain of electronics retail stores

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Definitions:

Final Payment

The last installment paid to settle a debt, which may include principal and interest.

Compounded Monthly

Describes the process in which interest earnings are calculated on both the initial principal and the accumulated interest from previous periods, recalculated every month.

Monthly Payment

An amount paid every month, often related to loans or financial agreements like mortgages.

Compounded Monthly

Interest on an investment or loan calculated and added to the balance monthly, leading to interest on interest.