Dazzling Inc., a cosmetics manufacturing company, introduces a moisturizer that is more expensive than similar products available in the market. The customers love its anti-ageing and anti-tanning features and do not mind spending more as they believe that the product is worth its price. As a result, the company makes a large profit from the sale of the new product. In this scenario, Dazzling has incorporated _____ in its business.
A. effectiveness
B. efficiency
C. undifferentiated marketing
D. vertical integration
Answer: A
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Mr. Big, a nonshareholder, who is not a customer, potential customer, governmental entity, or civic group, contributes $60,000 cash and land worth $100,000 to induce Carrie Corporation to relocate to his municipality. Carrie Corporation spent $50,000 of the cash within the first 12 months of his contribution to purchase machinery. The contribution results in
A) Carrie Corporation recognizes no income as a result of the contribution, the land and machinery have a basis of zero. B) Carrie Corporation recognizes $160,000 of income. C) Carrie Corporation recognizes no income as a result of the contribution, the land has a basis of zero, and the machinery has a basis of $50,000. D) Carrie Corporation recognizes no income as a result of the contribution, the land has a basis of $100,000, and the machinery has a basis of $60,000.
One disadvantage of large sales volume companies is that they are often family controlled and lack management depth.
Answer the following statement true (T) or false (F)
If you want to terminate your ownership in a publicly traded corporation, you simply sell your shares
Indicate whether the statement is true or false
Explain what cohesion means and why it is important