Which of the Following Statements Is Incorrect About Fundamental Business

question 47

Multiple Choice

Which of the following statements is incorrect about fundamental business strategies?

• A)A company implementing a cost differentiation strategy is attempting to increase operating efficiency of assets and improve the inventory turnover ratio.
• B)A company implementing a product differentiation strategy is attempting to improve its net profit margin through charging higher prices.
• C)A company will be more profitable because it will attract a higher volume of customers and sales revenue when it follows a product differentiation strategy versus a cost differentiation strategy.
• D)In general,a cost differentiation strategy results in lower profit margins whereas a product differentiation strategy results in higher profit margins.

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Definitions:

Loop Of Henle

A U-shaped tube in the kidney nephron essential for concentrating urine and conserving water by creating an osmotic gradient in the medulla.

Glomerulus

A network of small blood vessels located in the kidney that performs the first step of filtering blood to form urine.

Renal Medulla

The inner region of the mammalian kidney. Compare with renal cortex.

Renal Pyramids

Cone-shaped structures located in the kidneys, composed of tubules that are essential for urine formation.