Assume that your firm is a market leader in manufacturing detergent. How would the firm use position defense as a defensive marketing strategy to maintain its share?
What will be an ideal response?
Position defense means occupying the most desirable market space in consumers' minds, making the brand almost impregnable. Tide, as a popular laundry detergent, has become synonymous with washing machine detergent. Student answers may vary.
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________ provide the resources needed by a company to produce its goods and services
A) Retailers B) Marketing services agencies C) Resellers D) Suppliers E) Financial intermediaries
Thermocore is a medium-sized company that produces wall paneling. Thermocore is a wholly-owned subsidiary of a holding company called Tempra-Sure, Inc Both Thermocore and Tempra-Sure, Inc are owned by the same individuals as principal shareholders
Thermocore has fallen on hard times due to a downturn in the construction industry in the primary market area the company serves. Sales of the company have declined and net losses have occurred for each of the last three years. The company is in dire need of cash but the owners of Tempra-Sure, Inc and Thermocore know that additional financing from a bank or other source is unlikely due to the company's weakened financial condition. The owners of Tempra-Sure, Inc and Thermocore believe that the downturn in construction will eventually reverse and that Thermocore will return to profitability when conditions improve. Based on these beliefs, the owners have proposed to the independent auditors a plan whereby the holding company (Tempra-Sure, Inc) would obtain a loan from a bank and then make an intercompany loan to Thermocore. Under this plan, the owners would sell their personal residences to Tempra-Sure, Inc. Lease agreements between Tempra-Sure, Inc and the owners would be drafted. These lease agreements would allow the owners to continue to occupy their homes. Title to the homes would pass to Tempra-Sure, Inc. Tempra-Sure, Inc would become involved in property management in addition to holding the stock of Thermocore. Tempra-Sure, Inc would have no additional properties other than the personal residences of the owners. The acquisition of additional properties by Tempra-Sure, Inc is unlikely. Required: Assume that you are the partner in the public accounting firm performing the audit of Tempra-Sure, Inc and Thermocore. Prepare your response to the owners of Tempra-Sure, Inc and Thermocore regarding the plan to obtain additional financing. Include references to the Conceptual Framework and underlying assumptions of accounting in your response.
Canberry Corporation had net income of $100,000, beginning total assets of $760,000 and ending total assets of $680,000. Its return on total assets is:
A. 760% B. 13.9% C. 13.2% D. 680% E. 14.7%
Common law is a body of cases decided by legislatures
Indicate whether the statement is true or false