Which of the Following Correctly Identifies the Motivation of Firms

question 136

Multiple Choice

Which of the following correctly identifies the motivation of firms using a market segmentation strategy?

• A) Firms can avoid the government's anti-trust laws by selecting a small slice of a larger market.
• B) This strategy enables a firm to identify common traits in different consumer groups.
• C) With limited resources, firms can better satisfy the wants and needs of a smaller target market.
• D) Government regulations require firms to maintain accurate records to show that the firm has not discriminated against a market segment.

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Definitions:

Corrective Action

Steps taken to identify and correct the root causes of problems to prevent their recurrence.

Budgeted

Pertains to the financial plans or forecasts for future revenue, expenses, or other financial metrics over a specific period.

Actual Sales

The monetary value of goods and services sold by a company during a specific accounting period, as recorded in financial statements.

Top Management

The highest level of managers within an organization, responsible for setting policies and making critical decisions.