Competing Companies Deploy Whatever Means Necessary to Strengthen Market Position

question 59

Multiple Choice

Competing companies deploy whatever means necessary to strengthen market position, including all of the following except

• A)marketing tactics that include special sales promotions such as introducing new or improved features or increasing the number of styles to provide greater product selection.
• B)differentiating their products by offering better performance features than rivals.
• C)improving innovation to increase product performance and quality.
• D)making efforts to expand dealer networks.
• E)reducing distribution capabilities and market presence.

---

Definitions:

Deferred Tax Liability

A tax obligation that is recorded on the balance sheet but not yet due, arising from temporary differences between the accounting and tax treatment of transactions.

Temporary Differences

Differences between the tax base of an asset or liability and its carrying amount in the financial statements, which will result in taxable or deductible amounts in the future.

Taxable Income

The amount of income used to calculate how much the entity owes in taxes to the federal, state, and/or local government.

Pretax Financial Income

The income of a company before taxes are deducted, often used in financial reporting and analysis.