Under Which Condition Would a Cost Leadership Strategy Be Especially

question 36

Multiple Choice

Under which condition would a cost leadership strategy be especially effective?

• A) when there are many ways to achieve product differentiation that have value to buyers
• B) when most buyers use the product in different ways
• C) when buyers incur high costs in switching their purchases from one seller to another
• D) when buyers are small and have little power to bargain down prices
• E) when the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers

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Definitions:

Collection Float

The time interval between when a check is deposited in a bank and when the funds are made available.

Zero-Balance Account

A type of bank account that maintains a balance of zero by automatically transferring funds from a master account in exact amounts to cover charges or checks presented.

Master Account

A primary account in financial management that holds funds or securities and from which transactions can be made.

Cash Management

The strategy of collecting, managing, and investing cash in a way that enables the company to meet its financial obligations while maximizing liquidity.