For Small Businesses, Product Differentiation

question 19

Multiple Choice

For small businesses, product differentiation

• A) is more difficult than it is for larger firms because of the high cost of product research and development.
• B) usually concentrates on the pricing component of the total product offer.
• C) can be an important strategy to gain market share.
• D) is less important than it is for big firms with multiple product lines.

---

Definitions:

Reported Performance

The presentation of a company's operational and financial achievements over a specific period, typically as stated in its financial statements.

P/E Ratio

The price-to-earnings ratio, a measure of a company's current share price relative to its per-share earnings.

Accounting Methods

Systems and rules used for measuring, tracking, and recording a company’s financial transactions, often influencing how income and expenses are reported.

Common Size Statements

Financial statements that present all line items as a percentage of a base figure, facilitating comparison across time periods or companies.