The Fruitiest Candy Company Finds That from Time to Time

question 220

Multiple Choice

The Fruitiest Candy Company finds that from time to time it needs short-term funds to cover its operating expenses.It wants to establish a prearranged loan with a bank but has not found a bank that will guarantee such a loan.Perplexed by this,the management team asks you how they should proceed.You recommend that they

• A) file a suit against the banks.
• B) find a bank out of state or out of the country that will guarantee that the money will be available when needed.
• C) simply file a claim with the FDIC.
• D) retaliate by withdrawing all cash from the local bank and canceling all certificates of deposit.
• E) set up a line of credit with a bank that offers a revolving credit agreement.

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Definitions:

Discontinuous Innovation

A breakthrough product or service that significantly changes the market or how consumers interact with a market.

Categories Of Adopters

Categories of adopters refer to the classification of individuals within a market divided by how soon they adopt a new product or innovation, often outlined as innovators, early adopters, early majority, late majority, and laggards.

Laggards

In the context of marketing and innovation, individuals who are the last to adopt new products or technologies, often resistant to change.

Late Majority

A group in the diffusion of innovation theory, representing consumers who adopt new products or technologies after the average member of society, often motivated by a desire to maintain the status quo.