Amberger Products Competes in Consumer Electronics Where There Is a High

question 9

Multiple Choice

Amberger Products competes in consumer electronics where there is a high level of market and technological uncertainty.To address these challenges,Amberger Products does not commit itself to a particular product design or features early on; instead,it is geared to quickly and inexpensively assess if it has succeeded or failed with a design or feature,learn from its past,regroup and try again quickly.The option that Amberger Products uses is called a ________ option.

• A)staged
• B)positioning
• C)stepping-stone
• D)scouting

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Definitions:

Internal Growth Rate

The maximum growth rate a firm can achieve without resorting to external financing.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage.

Debt to Equity Ratio

The ratio showing the variance in financing methods between debt and equity for a company’s assets.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders as dividends, expressed as a percentage of the company's total earnings.