The Primary Opportunity Existing for Startups in Emerging Industries Is

question 31

Multiple Choice

The primary opportunity existing for startups in emerging industries is to:

• A) consolidate the industry and establish industry leadership as a result of doing do
• B) win customers by placing an emphasis on service and process innovation
• C) pursue a niche strategy, which focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation
• D) capture a first-mover advantage
• E) pursue a cost reduction strategy, which is accomplished through achieving lower costs than industry incumbents through process innovation

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Definitions:

Installment Plan

A method of payment where goods are purchased and possessed immediately, but payment is divided over a specified period of time in equal amounts.

Economic Substance

A accounting concept that transactions must have a genuine economic impact beyond the mere legal form, determining their treatment for tax purposes.

Perpetual Inventory System

This is an inventory accounting system where updates are made continuously to the inventory accounts and cost of goods sold as transactions occur, providing real-time inventory information.

Stockouts

A situation in inventory management when the demand or requirement for an item cannot be fulfilled from the current inventory or stock.