A Business Firm Segments Its Markets When This Strategy Increases

question 194

Multiple Choice

A business firm segments its markets when this strategy increases its sales revenue, profit, and ROI. When its increases in expenses more than offset the potentially increased revenues from segmentation, it should:

• A)terminate as many employees as possible to save money.
• B)not attempt to segment its market any further.
• C)reduce production costs, which will lower quality.
• D)act as its own distributor.

Comprehend the relationship between unemployment and the PPF.

Grasp the concept of the marginal rate of transformation and how it relates to the PPF slope.

Understand the various ways an agency relationship can be created and recognized under the law.

Identify the differences between an agent and an employee and the legal implications thereof.

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Definitions:

Gross Profit

The financial metric calculated as sales revenue minus the cost of goods sold, indicating the efficiency of a company in producing and selling its goods.

Sales Discounts

Reductions in the sales price offered by a seller to a buyer, often to prompt early payment or bulk purchases.

Accounts Receivable Turnover Ratio

A financial metric indicating how efficiently a company collects cash from its credit customers by measuring how often receivables are collected during a period.