Which of the Following Is NOT an Example of Competing

question 104

Multiple Choice

Which of the following is NOT an example of competing on the basis of differentiation?

• A) A car manufacturer offers the best warranty in the automobile industry.
• B) A firm designs its smart phone product with unique features.
• C) A movie theater distinguishes itself by offering cinema suites and dine-in options.
• D) A firm offers a much broader product line than its competitors do.
• E) A firm advertises more than its competitors do.

---

Definitions:

Vertical Analysis

A financial analysis method that represents each item in a financial statement as a percentage of a base figure, enabling comparison and assessment of financial health over different periods.

Trend Analysis

A type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item.

Gross Profit

The financial metric representing the difference between revenue and the cost of goods sold, before accounting for other expenses.

Vertical Analysis

A financial statement analysis method where each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.