Little Remedies Products -Which of the Following Statements About Product Lines Is MOST

question 228

Multiple Choice

Little Remedies Products
-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 lines refer to consumer products; product mixes refer to industrial products.
• C) An advantage of broad product lines is increased likelihood of access to large retail chain distribution.
• 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 R&D costs.

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Definitions:

Time Value

The principle that current money has a higher value than the same amount would in the future, given its potential to earn more.

Money

A medium of exchange that is widely accepted in transactions for goods and services, acting as a unit of account, a store of value, and sometimes, a standard of deferred payment.

Compounding

A method in which an investment's worth grows over time as the returns, including both capital gains and interest, accumulate interest.

Compound Interest

The practice of charging interest on the principle amount along with the interest that has been piled up from past periods, relevant to both lending and saving scenarios.