A Package Delivery Company Decides It Wants to Get into the Flower

question 40

Multiple Choice

A package delivery company decides it wants to get into the flower delivery business. However, it knows that FTD has a huge share of the market and can offer service worldwide. It decides to look for a market niche. Which of the following is not an advantage of this strategy?

• A) The company may be able to charge more for its product.
• B) It may not be profitable for FTD to compete in the niche.
• C) The company's market may be larger than FTD's market.
• D) The company can still attempt to serve other segments.

---

Definitions:

Directorships

Positions or titles held by members of a board of directors responsible for overseeing the management and strategic direction of an organization.

Compensation

Payment or benefit given to someone, such as an employee or a victim, in exchange for their services or as reparation for harm.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled.

Shelf Registrations

A process that allows issuers to register a new issue with the SEC that can be sold at any time within a two-year period.