What Kind of Strategy Is One by Which a Firm

question 21

Multiple Choice

What kind of strategy is one by which a firm maintains price parity with its competitors and profits from its benefit or cost advantage primarily through high price-cost margins,rather than through a higher market share?

• A)Pricing strategy
• B)Share strategy
• C)Margin strategy
• D)Focus strategy
• E)Generic strategy

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Definitions:

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects cash from its credit sales by dividing net credit sales by average accounts receivable.

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods during a period, indicating the efficiency of inventory management.