Question

Carbon Corporation develops and markets soft drinks and related products in the United States. Its product line consists of three beverage brands: Carbon Soda, a carbonated drink; Health Aqua, an enhanced water beverage; and Mango and Orange Carbon, two fruit-based drinks. The company’s CEO firmly believes that there is huge potential in the multi-billion dollar energy drink market.

Which of the following, if true, would weaken the argument for the introduction of a Carbon energy drink?

A	The demand for carbonated drinks has experienced a steady decline over the past few years.

B	It will take longer for Carbon to recoup its R&D investment than it did to recoup the R&D costs for the fruit drinks.

C	Studies indicate that a growing number of consumers perceive energy drink claims as false.

D	The other players in the energy drink market have long-term contracts with raw material suppliers.

E	Unsteady input costs have forced existing players to adopt a guarded approach to pricing.

Answer 1

Answer: Option C

Explanation: If the Studies indicate that a growing number of consumers perceive energy drink claims as false, it would weaken the possibilities of introduction of carbon energy drink in the market.