In a Declining Industry

question 93

Multiple Choice

In a declining industry

• A) product-differentiation efforts are focused on product refinement as a basis of product differentiation.
• B) firms that are first movers can gain product-differentiation advantages based on perceived technological leadership.
• C) highly differentiated firms may be able to gain product-differentiation advantages by preempting strategically valuable assets.
• D) highly differentiated firms may be able to discover a viable market niche that will enable them to survive despite the overall decline in the market.

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Definitions:

Net Income

The final income of a firm following the deduction of all expenditures, taxes, and interest from the gross revenue.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, revealing profit or loss.

Retained Earnings

Retained earnings are the portion of a company’s profits that is kept or retained rather than being paid out as dividends to shareholders or reinvested into the business.