Recent Research Has Shown That the First Firm to Enter

question 251

Multiple Choice

Recent research has shown that the first firm to enter a market often does not have a long-term advantage over later entrants into the market.An example that has been used to illustrate this is

• A)McDonald's entry into the high-end coffee market.
• B)Xerox, which became a generic term for making photocopies.
• C)Abercrombie and Fitch, which was the first clothing company to market to young men.
• D)the introduction of the first ballpoint pen in 1945.

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Definitions:

Zero-Based Budgeting

A concept of budgeting that requires managers to estimate sales, production, and other operating data as though operations are being started for the first time.

Budget Procedure

The process involving the creation, approval, and implementation of a financial plan for a business or an organization.

Top-Down Managerial

A management approach where decision-making and direction come from the top levels of the organization and flow downward.

Profit-Making Businesses

Enterprises or organizations that operate with the primary goal of earning financial profits.