In 2002,the Sara Lee Bakery Group Introduced Iron Kids Crustless

question 144

Multiple Choice

In 2002,the Sara Lee Bakery Group introduced Iron Kids Crustless Bread for mothers who had to cut the crusts off of sandwiches before their children would eat.By catering to finicky children,Sara Lee is using a positioning strategy based on:

• A) product class
• B) price and quality
• C) use or application
• D) product user
• E) competitor

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, often in the context of investment appraisal or determining the net present value.

Net Present Value

The difference between the present value of cash inflows and outflows over a period, used in capital budgeting to assess profitability of investments.

Working Capital

The difference between a company's current assets and its current liabilities.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, where the asset's cost is evenly spread over its useful life.