A Candy Store That Places Its Expensive Chocolates Only in Fine

question 75

Multiple Choice

A candy store that places its expensive chocolates only in fine hotels and restaurants frequented by the very rich is using which of the following competitive advantage strategies?

• A)retrenchment strategy
• B)differentiation strategy
• C)focus strategy
• D)cost- leadership strategy

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Definitions:

Dividend Payout Ratio

A financial metric that shows the percentage of earnings a company distributes to its shareholders in the form of dividends.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs associated with making and selling the product, calculated as net income divided by revenue.

Projected Addition

Projected addition refers to the estimated increase or expansion in a company's assets, revenues, or capabilities, based on future plans or investments.

Debt-Equity Ratio

An indicator that specifies the proportional role of shareholders' equity and debt in asset funding.