Which of the Following Financial Strategies Is Most Appropriate for a Low-Cost-Differentiation

question 7

Multiple Choice

Which of the following financial strategies is most appropriate for a low-cost-differentiation business?

• A)Lower financial costs by borrowing when credit costs are low and issuing stock when the market is high.
• B)Emphasize specialized quality of operations when the cost of doing so is relatively low.
• C)Emphasize obtaining resources and funding output improvements or innovations,even when financial costs may be high.
• D)None of the above.

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Definitions:

Wheat

A cereal grain, originally from the Levant region of the Near East and Ethiopian Highlands, but now cultivated worldwide, a staple food for many cultures.

Milk

A nutrient-rich liquid produced by the mammary glands of mammals, used as a primary source of nutrition for young mammals before they are able to digest other types of food.

Pareto Optimal

A Pareto optimal outcome is one in which it is impossible to make any individual better off without making at least one individual worse off.

Marginal Rate of Substitution

The rate at which one good can be substituted for another by a consumer without affecting their overall utility level.