A Firm Uses a Core Offensive Strategic Market Plan of Investing

question 10

Multiple Choice

A firm uses a core offensive strategic market plan of investing to improve competitive position.The strategic objective of the firm is to improve margins.Which of the following strategies is the firm most likely to use?

• A)reduce market focus
• B)harvest for cash flow
• C)enter unrelated new markets
• D)divest for cash flow
• E)improve marketing productivity

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Definitions:

Partnership Capital

The total amount of equity contributed by all partners in a partnership business.

Personal Assets

Assets owned by an individual, including tangible and intangible items of value such as real estate, investments, and personal property.

Unlimited Life

A characteristic of corporate entities indicating they can continue to exist indefinitely, beyond the lives of their owners or members, unless dissolved.

Mutual Agency

The principle in a partnership where each partner is empowered to commit the firm to a contract within the scope of the business’s operations.