The Integration of a Cost Leadership Strategy and a Differentiation

question 30

Multiple Choice

The integration of a cost leadership strategy and a differentiation strategy leads to a competitive advantage because:

• A)managers have greater flexibility in the actions they can take
• B)different firms need different types of strategies to be successful
• C)firms can offer some differentiated features at a relatively low cost
• D)one strategy is not enough for most large firms

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Definitions:

Dividends

Earnings disbursed by a company to its shareholders, generally as a sharing of profits.

Net Income

The total profit or loss of a company after all revenues, costs, and expenses have been accounted for, typically reported at the bottom of the income statement.

Annual Amortization

The process of spreading out a loan or intangible asset's cost over its useful life, reflecting each year’s expense on the financial statements.

Investment Balance

Investment balance refers to the total value of all the securities or assets that an individual or institution holds in an investment account at a given point in time.