Green Care manufactures lawn mowers and other lawn care products. Their latest lawn mower comes with blades that incorporate new technology that allows them to last five times longer than typical blades. The lawn mower also includes a comfort grip that is easier to hold and an updated style available in a variety of colors. Green Care is most likely differentiating itself through _____ with its blades and through _____ with its handle and styling.
A. durability; style
B. quality; design
C. design; attractiveness
D. customer focus; design
E. quality; comfort
Answer: B
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The revenue recognition principle does not pertain to long-term contracts, franchises, commodities, and installment sales
a. True b. False Indicate whether the statement is true or false
What is the effect of the sale of $5,000 worth of cash equivalents at cost in the statement of cash flows prepared under the direct method?
a. Add $5,000 in the reconciliation b. $5,000 investing cash inflow c. $5,000 operating cash inflow d. No disclosure
Harry agreed to pay $100 to rent a rooftop spot in downtown Seattle to watch the New Year's Eve festivities. The festivities were unexpectedly canceled because of concern over a terrorist attack. Harry is
a. obligated to pay the $100. b. not obligated to pay under the commercial impracticability doctrine. c. not obligated to pay under the force majeure doctrine. d. not obligated to pay under the frustration of purpose doctrine.
In capital budgeting analysis, the riskiness of a project is evaluated to:
A. determine the modified internal rates of return from the project. B. determine the appropriate rate of return to use for computing the present value of the estimated cash flows. C. determine the duration of the project. D. determine the role of management to ensure project completion within stipulated time. E. determine the opportunity rate of return.