Which of the Following Statements Best Describes the Typical Target

question 108

Multiple Choice

Which of the following statements best describes the typical target market?

• A) A target market will remain stable over time,including the same group of consumers.
• B) Target markets change over time as consumers drop in or out of the market,and as tastes change.
• C) Target markets are not strongly affected by changes in the external environment.
• D) Target markets only change when the features and benefits of the product offering change.
• E) Target markets cannot be specifically defined according to age,income,or location because these factors are continually changing

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Definitions:

Preemptive Right

Gives the current shareholders the right to purchase any new shares issued in proportion to their current holdings. The preemptive right enables current owners to maintain their proportionate share of ownership and control of the business.

Proxy Fight

An attempt to take over a company in which an outside group solicits existing shareholders’ proxies, which are authorizations to vote shares in a shareholders’ meeting, in an effort to overthrow management and take control of the business.

Dissident Shareholders

Shareholders who disagree with the company's management and policies, often expressing their dissatisfaction through votes against management proposals.

Semistrong-Form Market Efficiency

A form of market efficiency that posits all public information is already reflected in stock prices, alongside historical data.