How Can a Company Reduce the Threat of Substitute Products

question 212

Multiple Choice

How can a company reduce the threat of substitute products or services?

• A)Market the product to less than ten customers.
• B)Ignore competitive forces.
• C)Offer additional value through wider product distribution.
• D)Offer less value making the product far more generic and similar to the competition.

---

Definitions:

Retained Earnings

The portion of net income left over after dividends have been distributed to shareholders, reinvested into the company.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Operating Cycle

The average period of time between the purchase of inventory and the receipt of cash from accounts receivable, representing the length of time a company's capital is tied up.

Inventory

Consists of the goods and materials a business holds for the purpose of resale or production.