Which of the Following Holds True for Companies Following the Focused

question 2

Multiple Choice

Which of the following holds true for companies following the focused differentiation strategy?

• A) The niche that is an area of operation of one company cannot be made to disappear or be taken over by larger competitors.
• B) Companies following the focused differentiation strategy can charge very high prices.
• C) Companies following this strategy depend on their ability to reduce the price to drive competition out of the market.
• D) Damaging attacks do not come from larger firms.
• E) Companies following the focused differentiation strategy hardly have their growth stymied irrespective of the size of the market.

---

Definitions:

Open Market Operations

Open Market Operations involve the buying and selling of government securities by a central bank to control the money supply and interest rates in the economy.

Tight Monetary Policy

A central bank strategy aiming to slow economic growth by increasing interest rates and reducing the quantity of money in circulation.

Net Exports

The value of a country's total exports minus the value of its total imports, representing the trade balance.

Legal Reserve Requirement

A regulation set by central banks determining the minimum amount of reserves that must be held by a financial institution, usually a percentage of deposits.