The Text Describes How Lexus Was Able to Successfully Enter

question 16

Multiple Choice

The text describes how Lexus was able to successfully enter the luxury sedan market despite the dominance of BMW.Which of the following best explains how Lexus accomplished this task?

• A) Lexus targeted customers who were interested in high performance.
• B) Lexus used full market coverage to lower BMW's market share.
• C) Lexus focused on the market segment that valued reliability.
• D) Lexus used advertising that attacked BMW's quality ratings.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and receiving dividends.

Minimum Legal Capital

The least amount of capital that a company is required to maintain by law, intended to protect creditors by ensuring the company has enough assets to meet its obligations.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interests and possibly rights to dividends, voting, and information.

Corporation's Actions

Decisions or movements made by a corporation, such as dividend distributions, stock splits, or acquisitions, affecting its operations and stakeholders.