Mona Designs the Packages and Chooses the Brand Names for Goods

question 179

Multiple Choice

Mona designs the packages and chooses the brand names for goods produced by her firm. Mona is involved in which part of the marketing mix?

• A) promotion strategy
• B) distribution strategy
• C) product strategy
• D) pricing strategy

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Definitions:

Financial Risk

The risk added by the use of debt financing. Debt financing increases the variability of earnings before taxes (but after interest); thus, along with business risk, it contributes to the uncertainty of net income and earnings per share. Business risk plus financial risk equals total corporate risk.

Market Risk

The possibility for an investor to experience losses due to factors that affect the overall performance of the financial markets.

Diversifiable Risk

The portion of investment risk that can be reduced or eliminated through diversification among different assets.

Financial Leverage

Utilizing debt to finance additional assets, aiming to increase returns to shareholders but also increasing risk.