Scenario - SS.com Faced with Rapidly Growing Business, Swift Stocks, Inc., a Stocks

question 97

Multiple Choice

Scenario - SS.com
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-SS.com subsidiary for Swift Stocks can be classified as a _____.

• A) cash cow
• B) dog
• C) star
• D) question mark
• E) stuck in the middle business

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Definitions:

Efficiency

In economic terms, this refers to the optimal production and allocation of resources to maximize output with the least waste.

Scarce Resources

Limited resources which are not enough to satisfy the unlimited wants of people.

Opportunity Cost

The price of discounting the second most appealing alternative when engaging in decision-making.

Overtime Work

Overtime work refers to time spent working beyond the normal working hours, typically compensated at a higher pay rate.