Which of the Following Is NOT One of the Risks

question 47

Multiple Choice

Which of the following is NOT one of the risks of the focus strategy?

• A) The target segment's structure erodes.
• B) The segment's differences from other segments narrow.
• C) The advantages of a broad line increase.
• D) Focusers exit the industry.
• E) Demand disappears for the product in the target segment.

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Definitions:

Federal Income Taxes

Taxes imposed by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Corporations

Legal entities that are separate and distinct from their owners, with the ability to own assets, incur liabilities, and sell stock.

Double Taxation

A taxation principle referring to income taxes paid twice on the same source of income. This usually occurs with corporate income taxed at both the corporate level and again at the shareholder level on dividends.

Disadvantage

A condition or situation that makes it more difficult for someone or something to succeed or achieve a desired outcome.