When a Firm Produces Only a Single Product or Service

question 19

Multiple Choice

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids

• A) the extra cost of developing and producing additional versions of the product.
• B) creating a customer service gap.
• C) indirect distribution and logistics problems.
• D) restructuring the firm's strategic planning.
• E) amortization costs of product enhancements.

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Definitions:

Liable

Liable refers to the state of being legally responsible for something, typically involving the obligation to compensate for damage or loss caused.

Gross Negligence

Very great negligence.

Proven Negligence

A situation where it has been established that a party failed to exercise a level of care that someone of ordinary prudence would have in a similar situation, resulting in harm to another.

Claim Ticket

A receipt given for the temporary deposit of goods that verifies the holder’s right to retrieve the deposited item.