A Company Uses Which of the Following When It Focuses

question 31

Multiple Choice

A company uses which of the following when it focuses on pockets of demand that are declining more slowly than the industry as a whole to maintain profitability?

• A) An acquisition strategy
• B) Chaining
• C) A divestment strategy
• D) A niche strategy
• E) Franchising

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Definitions:

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Sales to Investment

A ratio that measures the efficiency of a firm in generating sales from its investments in assets.

Salaries

Regular payments made to employees for their services, typically expressed as an annual amount but paid in intervals (e.g., monthly or biweekly).

Departmental Personnel

Employees or staff members who work within a specific department of an organization.