Because of the Good Profits and a Fear of Growing

question 67

Multiple Choice

Because of the good profits and a fear of growing too fast, you decide to keep Taco Rocket in the same business and do not change the menu.You hope to retain the same market share and return-on-investment record.This is considered a ________ strategy.

• A) stability
• B) renewal
• C) retrenchment
• D) turnaround

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Definitions:

GIC

A finance option available in Canada, the Guaranteed Investment Certificate provides investors with a secured rate of return over an established time period.

Equivalent Value

The monetary value considered to be equal in worth to a specified amount under different conditions or in a different context.

Rate of Return

An investment's performance, marked by gains or losses during a defined period, articulated as a percentage of its beginning cost.

Compounded Semi-annually

This refers to the process of calculating interest on a principal amount at two intervals in a year, effectively increasing the amount of interest earned or paid.