If You Do Not Have a Large Market for Your

question 33

Multiple Choice

If you do not have a large market for your product or service,what should you do to be sure it retains its value?

• A)Make sure to scale your business and its cost to the size of your market.
• B)Identify other products or services that you could include alongside the original in order to increase market size.
• C)Consider ways to substantially change your product or service in order to increase your market size.
• D)Shelve your idea; perhaps the market will increase in future.

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Definitions:

EOQ

Economic Order Quantity, a formula used to determine the optimal quantity of inventory to order that minimizes total inventory costs.

Fixed Ordering Costs

Fixed ordering costs are consistent expenses incurred in the process of ordering inventory or supplies, regardless of the order size.

Material Cost

The expense incurred to purchase or produce the raw materials used in manufacturing a product.

Cash Management

The strategy of collecting, managing, and investing cash in a way that maximizes the availability of cash and minimizes the cost of using external funds.