Which of the Following Refers to an Advantage for Firms

question 28

Multiple Choice

Which of the following refers to an advantage for firms that adapt a unique marketing program for an individual market?

• A)By doing so, firms decrease their reliance on foreign market intermediaries for large sales.
• B)By doing so, firms scale up production substantially to meet the needs of a large and growing market.
• C)Products are tailored to specifically meet the exclusive needs of customers in that market.
• D)Governments provide heavy tax reliefs to firms that modify products and services.

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Definitions:

Present Value

The today's worth of a future sum or cash flows series, based on a predetermined rate of return.

Cash Inflows

Refers to the money coming into a company, typically from operations, investments, and financing activities.

NPV Zero

A situation where the net present value of a project or investment is zero, indicating that the projected earnings are exactly equal to the initial investment.

Required Return

The minimum expected return an investor demands for investing in a non-risk-free asset.