The Most Promising Opportunity for a Firm in a Declining

question 6

Multiple Choice

The most promising opportunity for a firm in a declining industry is to

• A) establish itself as a first mover in the post-shakeout industry.
• B) become a market leader in the pre-shakeout industry.
• C) become a fast follower in the pre-shakeout industry.
• D) merge with another firm.

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Definitions:

Inventory Turnover

A ratio that shows how quickly a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Merchandisers

Businesses that purchase goods for resale to consumers, playing a vital role in the retail industry by moving products from manufacturers to the market.

Wholesalers

Businesses that purchase goods in large quantities from producers to resell them to retailers or other businesses.

Retailers

Businesses that sell goods and services directly to consumers.