Which of the Following Statements Is Incorrect About Fundamental Business

question 53

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 asset turnover ratio.
• B) A company implementing a product differentiation strategy is attempting to improve its 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)Financial leverage is how a company finances its assets and can affect total profitability return to stockholders.

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Definitions:

Corporate Ladder

A metaphor for the structured hierarchy in a business organization and the progression of an employee's career within it.

Birth Order

The chronological order of sibling births in a family, which is thought to influence personality development and interpersonal relationships.

Adler

Alfred Adler was an Austrian medical doctor and psychotherapist who founded the school of individual psychology, focusing on the importance of feelings of inferiority.

Personality

A mix of attributes and traits that establish a person's unique personality and ways of acting.