Which Term Refers to Any Factors That Allow a Firm

question 31

Multiple Choice

Which term refers to any factors that allow a firm to differentiate its product or service from those of its competitors to increase market share?

• A) functional strategy
• B) competitive advantage
• C) corporate strategy
• D) related diversification

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Definitions:

Make-Or-Buy Decision

A decision-making process used by companies to determine whether to produce a product in-house or purchase it from an external supplier.

Cost Savings

The reduction in expenses achieved through efficiencies, economies of scale, negotiations, or eliminating unnecessary expenses.

Differential Revenue

The difference in revenue from one alternative to another, used in decision-making processes.

Differential Cost

The difference in cost between two alternative decisions, or the change in costs resulting from an increase or decrease in output.