According to Porter,the Term That Applies to the Breadth of a Company's

question 90

Multiple Choice

According to Porter,the term that applies to the breadth of a company's or business unit's target market is called

• A) competitive scope.
• B) differentiation.
• C) focus.
• D) diversification.
• E) cost leadership.

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Definitions:

Earnings Decrease

A reduction in the income a company generates from its activities, excluding extraordinary and non-recurring items.

Risk

The potential for experiencing losses or less-than-expected returns, inherent in investments and business activities.

Common-sized Financial Statements

Financial statements that present all items in percentage terms. The balance sheet items are presented as a percentage of assets, and income statement items are presented as a percentage of sales.

Industry Averages

Statistical benchmarks that represent the standard or average performance in a particular industry, useful for comparison and analysis.