Kmart Has Struggled for Years Competing with Wal-Mart and Target

question 41

Multiple Choice

Kmart has struggled for years competing with Wal-Mart and Target.It tried celebrity labels,but that did not help.It cannot lower prices as low as Wal-Mart,because it does not have the distribution expertise.This is an example of a(n) ____ strategy.

• A) prospector
• B) defender
• C) reactor
• D) rescuer
• E) analyzer

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Definitions:

Debt Ratio

Debt ratio is a financial ratio that measures the extent of a company's leverage by comparing its total debt to its total assets.

Total Liabilities

The combined amount of all financial obligations a company owes to external parties, recorded on the balance sheet.

Total Assets

The sum of all assets owned by a company, including current and non-current assets, as reported on the balance sheet.

Revenues

The total amount of income generated by the sale of goods or services related to a company’s primary operations.