A Niche Market Strategy Is Particularly Attractive to a Small

question 38

True/False

A niche market strategy is particularly attractive to a small firm that is trying to escape direct competition with industry giants.

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Definitions:

Money Market

A segment of the financial market where short-term financial instruments with high liquidity and short maturities are traded.

Float Motive

The rationale for holding money in transaction accounts to satisfy daily operational cash flow needs.

Liquidity

The ease with which an asset or security can be converted into cash without affecting its market price.

Long-term Maturities

Refers to debt securities or loans with repayment periods typically exceeding one year, often associated with bonds or long-term loans.