Business Strategy Defines

question 40

Multiple Choice

Business strategy defines

• A)the way a firm competes in a particular industry or market.
• B)how a firm gains a competitive advantage over its rivals within a specific industry or market.
• C)both a and b.
• D)neither a nor b.

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Definitions:

Fixed Costs

Expenses that do not change with an increase or decrease in the number of goods or services produced, such as rent, salaries, and insurance.

Break-Even Point

The point at which total revenue equals total costs, resulting in neither profit nor loss.

Variable Costs

Costs that change in proportion with the level of activity or production volume of a company.

Contribution Rate

The contribution margin expressed as a percentage of the unit selling price.