Which of the Following Statements About Product Lines Is Most

question 44

Multiple Choice

Which of the following statements about product lines is most accurate?

• A)An advantage of a narrow product line is the ability to have a greater gap between price points.
• B)Product line refers to consumer products; product mix refers to industrial products.
• C)An advantage of broad product lines is the increased likelihood of gaining access to large retail chain distributions.
• D)A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions.
• E)A broad product line reduces the need for products to be linked by usage or customer base.

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Definitions:

Working Capital Financing Policy

Strategies a company uses to manage and finance its current assets and current liabilities to ensure it has sufficient liquidity to run its operations.

Net Working Capital

Current assets minus current liabilities.

Current Ratio

A financial metric that assesses a firm's capacity to meet immediate liabilities using its current assets.

Cash Conversion Cycle

A metric that shows the time span between a company's outlay of cash and its collection of receivables; a measure of liquidity.