According to the PIMS (Profit Impact of Market Strategy) Database

question 5

Multiple Choice

According to the PIMS (Profit Impact of Market Strategy) database, which of the following is not necessarily associated with high growth?

• A)increasing investment
• B)increasing quality
• C)increasing gross margins
• D)increasing value-added

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, highlighting the efficiency of a company in managing its operations and costs.

Operating Expenses

Costs incurred during the normal operations of a business, excluding the cost of goods sold.

Sales

The transactions involving the exchange of goods or services for money, constituting the primary revenue source for most businesses.

Sales Discount

A reduction in the price of goods or services offered by a seller to a buyer, often to incentivize the purchase or prompt payment.