Phil Is Approaching a Banker for Some Additional Financing

question 78

Multiple Choice

Phil is approaching a banker for some additional financing. Which of the following assets would be most important to the banker?

• A) Goodwill
• B) Inventory
• C) Current patents
• D) Business reputation

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Definitions:

Market Penetration

A strategy aiming to increase market share within an existing market segment by using methods such as pricing adjustments, increased promotion, and product improvements.

Market Development

A growth strategy that involves the introduction of existing products into new markets to increase sales and market share.

Diversification

A strategy that involves entering into new markets or investing in different types of assets to reduce risk and increase potential returns.

Market Development

A growth strategy where a business seeks to sell its existing products into new markets to increase its customer base.