"Positioning

question 174

Multiple Choice

"Positioning":

• A) applies to new products-but not existing products.
• B) helps strategy planners see how customers view competitors' offerings.
• C) is concerned with obtaining the best shelf space in retail outlets.
• D) is useful for combining but not for segmenting.
• E) eliminates the need for judgment in strategy planning.

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Definitions:

Equity Multiplier

This financial ratio measures a company's leverage by comparing its total assets to its total shareholders' equity.

Net Profit Margin

A financial metric that shows the percentage of net income relative to revenue, indicating how much profit is generated from each dollar of sales.

Gross Margin

The difference between sales revenue and the cost of goods sold (COGS), indicating the profitability of a company's core business activities.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its earnings before interest and taxes (EBIT) to its interest expenses.