An Investor Is Considering in Which of Two Start-Up Companies

question 93

Multiple Choice

An investor is considering in which of two start-up companies to invest. The investor has faith in the industrial organization model of above-average returns and is using its concepts to make a decision. Both start-up companies propose to manufacture health-focused foods with such characteristics as low salt,low sugar,high fiber,and no artificial additives. RexRich Foods has a business strategy of producing a differentiated product for which consumers will pay more. Green Pastures Foods is in the health-foods industry because of its internal culture and commitment to healthful lifestyles. Which firm will the investor feel is most consistent with the model of industrial organization?

• A)Green Pastures Foods
• B)RexRich Foods
• C)Both firms are consistent with the I/O approach.
• D)At the entrepreneurial stage, the model which companies follow is not important.

Understand the importance and impact of conveying bad news appropriately in business communication.

Identify the differences between direct and indirect strategies for delivering bad news.

Recognize ethical considerations in business communication, especially in conveying negative news.

Apply positive phrasing and empathy to soften the impact of bad news.

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Definitions:

Aggregate Demand Curve

A curve that represents the total demand for all goods and services in an economy at various price levels, typically downward sloping.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, a measure of inflation.

Consumers Feel Wealthier

A phenomenon where consumers perceive themselves to have more disposable income or wealth, leading to increased spending.

Aggregate Demand Curve

A graphical representation showing the relationship between the total quantity of goods and services that households, businesses, and the government are willing to purchase at each price level.