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When Sara Lee Developed Crustless Bread,it Probably Planned to Rely

question 109

Multiple Choice

When Sara Lee developed crustless bread,it probably planned to rely on which of the following to gain exposure for the bread and to explain how the convenience of the product justifies its higher price.(Sara Lee could not have done this if the product had not been new and innovative. )


Definitions:

Capital Lease

A lease agreement that allows a lessee to use an asset in exchange for payment, with terms that transfer substantially all risks and benefits of ownership.

Operating Leases

Leases used for short-term leasing of assets, where the lessee does not assume the risk of ownership, and the asset will be returned to the lessor at the end of the lease term.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate sales revenue, calculated by dividing sales revenue by the average total assets.

Operating Lease

Operating lease is a contract that allows for the use of an asset but does not convey rights of ownership of the asset.

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