Which of the Following Statements Is Most Likely to Be

question 67

Multiple Choice

Which of the following statements is most likely to be true regarding an organization that follows a K-strategy?

• A) Typically, organizations use a K-strategy when they have a monopoly in the industry.
• B) Organizations following a K-strategy always concentrate their competences and skills to compete for resources in a single niche.
• C) Typically the K-strategy is used by organizations for the introduction of highly complex technical products.
• D) Organizations following a K-strategy wait to enter a new environment until the uncertainty in that environment is reduced.

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Definitions:

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, contributing towards covering fixed costs and generating profit.

Return On Investment (ROI)

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Net Operating Income

The total profit of a business after operating expenses are deducted but before taxes and interest are calculated.

Combined Margin

A measure used in financial analysis that aggregates gross profit, operating margin, and net margin.