The Purpose of the Introduction of 3M Post-It^® Flag Highlighters

question 21

Multiple Choice

The purpose of the introduction of 3M Post-it^® Flag Highlighters was to

• A)stay ahead of trends and focus its marketing program on only one segment.
• B)stay ahead of trends and focus its marketing program on two mutually inclusive segments.
• C)increase production economies of scale by reducing manufacturing and marketing costs for Post-it^® Flags and Post-it^® Notes.
• D)preempt a competitive move by Sanford's Sharpie to introduce a similar product.
• E)help college students with their studying.

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage or equity.

Dividend Payouts

The portion of a company's earnings that is distributed to shareholders in the form of cash or additional shares.

Accounts Receivable

Outstanding payments from customers to a firm for received goods or services that remain unpaid.