Which of the Following Is a Difference Between Firms That

question 24

Multiple Choice

Which of the following is a difference between firms that have high scalability and firms that have low scalability

• A) Firms with high scalability incur extremely low fixed costs, whereas firms with low scalability incur extremely high fixed costs.
• B) Firms with high scalability have variable costs as 80 to 85 percent of total costs, whereas firms with low scalability have variable costs as zero to five percent of total costs.
• C) Firms with high scalability serve additional customers at extremely low incremental costs, whereas firms with low scalability serve additional customers at high incremental variable costs.
• D) Firms with high scalability have a low contribution margin, whereas firms with low scalability have a high contribution margin.

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Definitions:

Transactional Selling

A sales approach focused on short-term interactions where the primary goal is to make an immediate sale rather than build a long-term relationship.

Source Partnering

The strategic collaboration between buyers and suppliers intended to improve or optimize the sourcing process.

Probing

The technique of asking questions to gather more detailed information or clarify ambiguities, often used in sales, negotiations, or counseling.

Manipulation

Influencing or controlling someone or something to one's advantage, often in a deceptive or unfair manner.