Swift Stocks Faced with Rapidly Growing Business, Swift Stocks, Inc., a Global

question 51

Multiple Choice

Swift Stocks
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an online stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share, but it faces a very high business growth rate. In the brokerage industry, the competition is fierce and all players are cutting their online commission rates.
-Swift Stocks is following which strategy, according to Porter, through the .com subsidiary?

• A) Stability
• B) Cost leadership
• C) Focus
• D) Differentiation
• E) Retrenchment

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Definitions:

Operating Cycle

The period between the acquisition of inventory by a business and the collection of accounts receivable generated from the sale of that inventory.

Acquisition Of Inventory

The process through which a business purchases goods to be sold, which may be raw materials for manufacturing or finished goods for resale.

Collection Of Cash

The process by which businesses gather or accumulate monetary payments received from customers.

Committed Operating Loan

A loan agreement where the lender agrees to provide a fixed amount of operating capital to a borrower for a specified term.