Benz & Frendz Corp

question 35

Multiple Choice

Benz & Frendz Corp., a manufacturer of high end consumer durables, experienced a sluggish sales growth in most of its product categories during three consecutive quarters of 2009. However, market analysis revealed that its competitors' sales had also slackened during this period. Analysts pointed out that when all firms are losing sales, it is extremely important to adopt strategies that are aimed at retaining customers. This led the firm to reduce operation costs while maintaining product quality. They also revamped their marketing strategy to focus on the values created by their products. Which of the following can be inferred from the strategies adopted by the firm?

• A) The company was marketing its products amidst an economic downturn.
• B) The company was trying to protect its market share and continue to operate as a market leader.
• C) The company was focusing on geographical expansion.
• D) The company was aiming to capture a new market segment.
• E) The company was focusing on market penetration.

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Definitions:

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This can refer to various official norms and regulations established by organizations and government agencies in the United States spanning different industries and areas such as accounting, safety, and quality.

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Generally Accepted Accounting Principles; these are the standard set of accounting rules, standards, and procedures that companies use to compile their financial statements in the United States.

IFRS

International Financial Reporting Standards, a set of accounting guidelines that govern how financial statements should be reported around the world.

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The examination of financial statements by a certified public accountant in order to express an opinion as to the fairness of presentation.