Bubbly Inc

question 29

Multiple Choice

Bubbly Inc.has decided to introduce a new line of energy drinks.It does not have the financial resources to widely promote its new product line,but it can make a real impact if it carefully chooses a specific market segment.The CEO of Bubbly thinks the best idea is to market the product to young males,but the VP of Marketing thinks that targeting female professionals is much more likely to lead to success for the new product line.If the following facts were known,which one would weaken the VP of Marketing's position?

• A) An important goal in the company's annual report is achieving success in the energy drink market.
• B) Young males often have a low awareness of sodapop brands.
• C) Professionals have more disposable income than nonprofessionals.
• D) In several different market segments there is increased concern about social responsibility issues.
• E) Professionals are usually more concerned than nonprofessionals are about the long-term health effects of energy drinks.

---

Definitions:

Planning Budget

A financial plan created to estimate a company’s revenue, expenses, and cash flow for a specific future period.

Refurbishing Materials

Materials used in the process of renovating or restoring products to a like-new condition.

Planning Budget

A budget prepared for a specific level of activity; it helps manage finances by projecting income and expenditures over a defined period.

Net Operating Income

The profit realized from a business's operations after subtracting all operating expenses but before taxes and interest.