Which of the Following Are Questions That Must Be Addressed

question 11

Multiple Choice

Which of the following are questions that must be addressed when determining responses to a competitor's threat?

• A)If you respond, is the competitor willing and able to lower their price again?
• B)Is our position in other markets at risk if the competitor gains market share?
• C)Is there a response that would cost you more than the preventable sales loss?
• D)All of the answer choices.
• E)Both if you respond, is the competitor willing and able to lower their price again and is our position in other markets at risk if the competitor gains market share?

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Definitions:

Incremental Cash Flows

The additional cash flow a business receives from undertaking a new project.

Sunk Costs

Outlays already made that cannot be refunded or retrieved.

Project Value

The total worth of a project, calculated by evaluating all incoming and outgoing cash flows to determine its overall financial benefit.