When a Firm Provides a Specialized Product or Service for a Narrow

question 61

Multiple Choice

When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy.

• A) product differentiation
• B) market niche
• C) mass customization
• D) process efficiency

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Definitions:

Average Collection Period

The average collection period is the average amount of time it takes for a business to receive payments owed by its customers for sales made on credit.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Sales on Account

Transactions where goods or services are delivered with payment to be made at a later date, typically recorded as accounts receivable.

Inventory Turnover

A financial ratio indicating how many times a company's inventory is sold and replaced over a period, illustrating the company's efficiency in managing and selling its stock.