The Increased Share of Market That Is an Indicator of the Success

question 43

Multiple Choice

The increased share of market that is an indicator of the success of an SBU's products and programs,is the primary objective of both New Edge Inc.and Cutting Edge Inc.If New Edge Inc.increases its market share by 10 percent during a given period,while Cutting Edge Inc.increases its market share by 2 percent,New Edge Inc.can be said to be more:

• A)defensive.
• B)effective.
• C)of a cost leader.
• D)sensitive to the environment.

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Definitions:

Corporate Decisions

Corporate decisions are choices or judgments made by the leadership of a corporation that affect the direction, strategy, operations, or governance of the organization.

Preemptive Rights

Rights that allow shareholders to purchase additional shares in a company before the company offers them to the public, protecting their ownership percentage from dilution.

Transferability

The ability of an asset or property right to be sold or otherwise transferred from one party to another.

Watered Stock

Shares issued by a company at a value much greater than its asset worth, inflating its apparent value without actual backing.