Which of the Following Is the Reason a Company May

question 2

Multiple Choice

Which of the following is the reason a company may choose not to focus on the largest, fastest-growing segments?

• A) The smaller segments may be more profitable to the firm.
• B) It may lack the skills to serve larger segments.
• C) The right size and growth characteristics don't match its goals.
• D) The segments may be too competitive.
• E) It may lack the physical and financial resources to serve larger segments.

---

Definitions:

Withdrawal

Money taken out from a business by its owner for personal use, decreasing the owner’s equity in the business.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Interrelationships

The way in which each of two or more things is related to the other or others.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period of time.