Which of the Following Is a Risk (Or Potential Pitfall)of

question 14

Multiple Choice

Which of the following is a risk (or potential pitfall) of cost leadership?

• A) Cost cutting in one area of the value chain might increase costs in another.
• B) Attempts to stay ahead of the competition may lead to gold plating.
• C) Cost differences increase as the market matures.
• D) Producers are more able to withstand increases in supplier costs.

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Definitions:

Direct Lease

A rental agreement directly between the landlord and tenant, excluding any subleasing arrangements.

Tax Benefits

Financial advantages granted by governmental policies to reduce a taxpayer's burden, often to encourage certain business activities or investments.

Capital Lease

A lease classified as an asset on a company's balance sheet, indicating the lessee has ownership-like rights.