Which of the Following Companies Has a Market-Oriented Business Definition

question 66

Multiple Choice

Which of the following companies has a market-oriented business definition?

• A) An electronics company, whose business definition is: "We produce microchips."
• B) A hotel, whose business definition is: "We rent rooms."
• C) An apparel company, whose business definition is: "We make and sell women's clothing."
• D) A cosmetic company, whose business definition is: "We sell hope and self-esteem."
• E) A pizzeria, whose business definition is: "We sell the world's most delicious thin-crust pizzas."

---

Definitions:

Payback Period

The length of time required to recover the initial cost of an investment, calculated by dividing the initial investment by annual cash inflows.

Cost of Capital

The yield a business needs to achieve on its investments to keep its market price stable and draw in capital.

Cash Flows

Cash flows refer to the net amount of cash and cash-equivalents being transferred into and out of a business.

Stand-Alone Project

A project considered and evaluated independently from other projects, focusing on its own merits without consideration for its interaction with other initiatives.