Frosty Inc is an American firm that manufactures and markets a line of ice creams under the brand name Frosty Delight
Together with Magic Bakes, a popular brand of baking mixes and canned frostings, the firm introduces a line of Frosty Magic Bakes, a line of ice cream cake mixes. The new product line, Frosty Magic Bakes, uses the logos of both Frosty Delight and Magic Bakes. This is an example of ________.
A) franchising
B) cobranding
C) pure product bundling
D) mixed product bundling
E) licensing
B
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If a material amount of inventory has been ordered through a formal purchase contract at the balance sheet date for future delivery at firm prices,
a. this fact must be disclosed. b. disclosure is required only if prices have declined since the date of the order. c. disclosure is required only if prices have since risen substantially. d. an appropriation of retained earnings is necessary.
In most cases, prices are set by the
a) competitive market. b) largest competitor. c) selling company. d) customers.