Which of the Following Examples Illustrates a Niche Strategy

question 7

Multiple Choice

Which of the following examples illustrates a niche strategy?

• A)Libra Inc., a motor company, using new production techniques to achieve economies of scale
• B)Alpha Electronics deciding to dissolve one of its strategic business units
• C)Venus Inc. selling products similar to the ones available in the market
• D)Relish, a confectionery store, selling handcrafted chocolates in only one city

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Definitions:

EPS

Earnings Per Share; a key financial metric that divides a company's profit by the outstanding shares of its common stock.

Equity

The value of an asset after deducting the value of liabilities, representing an owner's interest in a company or property.

Debt

Money owed by one party to another, typically used as a means of borrowing to finance an activity or purchase.

Financial Leverage

The use of borrowed funds to finance the acquisition of assets, with the expectation that the income or capital gain from the assets will exceed the cost of borrowing.