When a Regional Computer-Manufacturing Firm Began to Seek Out Customers

question 42

Multiple Choice

When a regional computer-manufacturing firm began to seek out customers who lived outside of its traditional market boundaries, the firm was employing which of the following new customer expansion strategies to expand its total market?

• A) product differentiation strategy
• B) latent demand strategy
• C) market-penetration strategy
• D) geographic-expansion strategy
• E) new-market segment strategy

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Definitions:

Dividends Paid

Cash or stock distributed to shareholders out of a company's earnings.

Interest Received

The income earned from any form of investments like savings accounts, certificates of deposit, or bonds.

Cash Flows

The aggregate sum of cash entering and leaving a business, critically impacting its financial fluidity.

Financing Activities

Transactions and events that affect a company's long-term liabilities and equity, including issuing debt, repaying loans, and distributing dividends, as reported in the cash flow statement.