Which of the Following Is a Danger of Using a Niche

question 83

Multiple Choice

Which of the following is a danger of using a niche strategy?

• A)Niches change.
• B)Niches can go away.
• C)Entering a niche requires adaptability in your initial plan.
• D)All of the above

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Definitions:

Constant Growth Rate

The steady rate at which a company’s dividends are expected to grow, often used in valuing stocks with the Gordon Growth Model.

Expected Value

The weighted average of all possible values for a given set of probabilities, used in statistics and financial decision making.

Firm's Stock

The shares of ownership in a corporation that represent a claim on the company's earnings and assets.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, often used by investors to gauge the income-generating ability of a stock.