All of the Following Situations Are Conducive to Market Development

question 101

Multiple Choice

All of the following situations are conducive to market development except:

• A) when an organization competes in a high-growth industry.
• B) when an organization is very successful at what it does.
• C) when new untapped or unsaturated markets exist.
• D) when an organization has excess production capacity.
• E) when an organization's basic industry is becoming rapidly global in scope.

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Definitions:

Times Interest Earned Ratio

A financial metric that measures a company's ability to pay its interest expenses on outstanding debt with its earnings before interest and taxes.

Return On Total Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring how efficiently a company uses its assets to generate profit.

Year 2

Typically refers to the second year in a given context, such as the second year of a business, investment, or educational program.

Gross Margin Percentage

A financial metric that measures the difference between revenue and cost of goods sold as a percentage of revenue.