According to Michael Porter,a Business That Avoids Direct Confrontation with Its

question 26

Multiple Choice

According to Michael Porter,a business that avoids direct confrontation with its major competitors by concentrating on narrowly defined market niches is using the ______ strategy to gain and maintain competitive advantage.

• A)overall cost leadership
• B)differentiation
• C)focus
• D)segmenting

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Definitions:

Yield

Definition: The income return on an investment, such as the interest or dividends received from holding a particular security.

Revolving Line of Credit

A flexible loan where the borrower can access funds up to a certain limit, pay back, and then borrow again without needing to reapply for a new loan.

Simple Interest

Interest computed exclusively on the original amount of a loan or deposit, without adding interest to the principal for future calculations.

Annual Rate

The interest rate for a period of one year, often used to compare the yields of investments or loans.