How Can a Company Reduce the Threat of Substitute Products

question 212

Multiple Choice

How can a company reduce the threat of substitute products or services?

• A)Market the product to less than ten customers.
• B)Ignore competitive forces.
• C)Offer additional value through wider product distribution.
• D)Offer less value making the product far more generic and similar to the competition.

Grasp the fundamental economic concept of investment and how it affects capital.

Understand the relationship between savings decisions and investment capabilities of firms.

Know the implications of owning common stock and the benefits it entails.

Describe the financial interactions between households and firms through bonds.

---

Definitions:

Undiscounted Lease Payments

Lease payments made over the lease term without reducing them for interest or present value factors.

Lessees Disclosure

Information that lessees are required to make known, typically relating to the rights and obligations arising from leasing arrangements per accounting standards.

Initial Direct Costs

Expenses directly associated with obtaining a financing agreement or leasing contract.