A Firm Trying to Close a Profitability Gap Is Concentrating

question 37

Multiple Choice

A firm trying to close a profitability gap is concentrating on its most profitable products and abandoning markets that it cannot win. Which strategy is the firm most likely using?

• A)segmentation
• B)capacity utilization
• C)rationalization
• D)forward integration

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Definitions:

Containment Strategy

A foreign policy strategy aimed at preventing the expansion of a hostile power or ideology, notably used by the United States during the Cold War to limit the spread of communism.

Korean War

A conflict between North Korea, with the support of China and the Soviet Union, and South Korea, with the principal support of the United States, fought from 1950-1953.

Disarmament Talks

Diplomatic meetings aimed at reducing or eliminating certain types of weaponry, often involving multiple countries and international organizations.

Declared Independence

The formal assertion by a specific territory or group that it is independent and constitutes a state, no longer under the control or governance of a foreign power.