If a Cola Producer Bought Out a Mango Juice Producer

question 186

Multiple Choice

If a cola producer bought out a Mango juice producer in an attempt to appeal to health-conscious consumers who do not drink soft drinks, it would be pursuing a ______________ opportunity.

• A) market development
• B) diversification
• C) market penetration
• D) product development

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Definitions:

Special Order

A one-time order or contract that is outside of a company’s normal production or service offerings, often requiring special terms.

Variable Cost

Costs that vary directly with the level of production or volume of output.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Constrained Resource

A limited resource within a production or project environment that restricts the output or completion time.