APEX Business Finance 8.2.4 Study Guide

What is guaranteed by an implied warranty for all products?

That the product will work as described for a reasonable amount of time

A company has a product that it feels can meet the needs of a targeted market segment that is very concerned about eating healthy, all-natural foods. Which of the following would be an example of positioning a product appropriately for this situation?

Initiating an advertising campaign that shows the all-natural process of the company's growers

Which stage in the product life cycle often sees a business spending a lot of money on advertising?

Introduction

When consumers suffer a loss or injury due to a product, the company that manufactured the product may have to deal with what issue?

Liability

During the production process for a certain product, a container of fluid was labeled incorrectly so that when it was used in building the product, the result was not as intended. What sort of defect does this represent?

Manufacturing

In what stage of the product life cycle does a successful product usually face significant competition for market share?

Maturity

What is the primary goal for a product during its maturity phase?

Maximize profit

If a product is no longer showing strong market share and sales are diminishing, which of the following would be the best approach to trying to extend its lifetime on the market?

Re-launch

A company has been promoting a relatively young product, which is beginning to show significant increase in market share. During the growth stage of the product life cycle, what is one common choice about how to use profits from the product sales?

Reinvest the profits in order to pursue further market share.

What is a warranty?

The promise that a product will work well for a reasonable amount of time at a reasonable level of quality.