Which of the Following Is a Disadvantage of Using a Cost-Based

question 62

Multiple Choice

Which of the following is a disadvantage of using a cost-based strategy?

• A) It requires a geographically limited market.
• B) The business may become too specialized, resulting in two few customers to be viable.
• C) It attracts intense competition.
• D) It is difficult to generate customer loyalty.

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Definitions:

Mutualism

A type of symbiotic relationship between two species in which both benefit from the interaction, contributing to their survival and success.

Parasite

An organism that lives in or on another organism (its host) and benefits at the host's expense.

Hosts

Organisms that provide nourishment or shelter to parasites or mutual symbionts, playing crucial roles in ecosystems and disease dynamics.

Internal

Relating to or situated on the inside of something; inner.