Axis Auto Tries to Keep Its Operational Spending as Low

question 3

Multiple Choice

Axis Auto tries to keep its operational spending as low as possible so that it can pass its savings on to customers in the form of lower prices.This is known as a ________ strategy.

• A)cost-leadership
• B)differentiation
• C)specialization
• D)growth

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Definitions:

Annually Compounded

Interest on an investment that is calculated and added to the principal sum once a year.

Rate of Return

The positive or negative change in the worth of an investment, quantified over a predetermined period and depicted as a percentage of the initial investment cost.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.

Successive Years

Successive years that occur back-to-back without any breaks.