An Upmarket Dressmaking Company Deliberately Keeps Its Number of Outlets

question 93

Multiple Choice

An upmarket dressmaking company deliberately keeps its number of outlets very low even after years of climbing profits.There are no more than two in any major city of the United States.The policy may be justified in terms of the company's objective to ______.

• A) cut costs
• B) meet market's needs
• C) be exclusive
• D) play it safe

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Definitions:

Stock Repurchase

A company's buyback of its own shares from the marketplace, usually to increase the value of remaining shares by reducing supply.

Book Value

The net value of a company's assets, subtracting its liabilities and intangible assets, often used to assess whether a stock is under- or overvalued.

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Reverse Stock Split

A corporate action that reduces the number of a company's outstanding shares by combining them into a smaller number of shares.