A Differentiation Strategy Is Based on Creating a Product That

question 14

Multiple Choice

A differentiation strategy is based on creating a product that customers perceive as being:

• A) the same as other available products.
• B) distinct from other available products.
• C) the least costly product in the industry.
• D) the most costly product in the industry.
• E) cheaper, but inferior to the available products.

---

Definitions:

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing assets minus liabilities.

Venture Capitalists

Individuals who make large investments in new ventures in return for an equity stake in the business.

Management Role

Refers to the functions and responsibilities assigned to managers, including planning, organizing, leading, and controlling.

Entrepreneurship

The process of designing, launching, and running a new business, typically starting as a small business, such as a startup.