When Expenses Are Greater Than the Potential Increased Sales from Market

question 43

Multiple Choice

When expenses are greater than the potential increased sales from market segmentation, a firm should

• A) not consider market segmentation at this time.
• B) combine departments within the company to make the process more streamlined.
• C) reduce production costs or increase prices to facilitate the segmentation process.
• D) seek alternate channels of distribution, including Internet sales.
• E) discontinue manufacturing any products that are not in the mature stage of their product life cycle.

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Definitions:

Deficit

The amount by which expenses exceed income or liabilities exceed assets.

Dividend Yield Ratio

An indicator of the yearly dividends paid by a corporation as a proportion of its stock price.

Dividends Per Share

The total dividends declared by a corporation for each outstanding share of common stock, reflecting the distribution of earnings to shareholders.

Market Price

The current price at which an asset or service can be bought or sold on the open market.