Sears and Holiday Inn Encountered Difficult Times Because They Did

question 140

Multiple Choice

Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in service of their primary target market segment. Both companies are ________.

• A) niches
• B) jack-of-all-trades
• C) middle-of the roaders
• D) red oceans
• E) laggards

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Definitions:

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and made available for use.

Commercial Substance

A concept in accounting that indicates a transaction significantly alters the economic position or cash flows of an entity.

Straight-Line Depreciation

A strategy for dividing the cost of a substantial asset through its operational life in even yearly portions.

Productivity

The measure of efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.