Which One of the Following Is the Best Example of a Risk

question 16

Multiple Choice

Which one of the following is the best example of a risk associated with stock ownership?

• A) The stock paid a regular quarterly dividend.
• B) The firm's net income decreased by 4 percent for the quarter, as had been expected.
• C) One of the firm's patent applications was unexpectedly rejected.
• D) The firm's cost of debt increased as the result of an expected tax cut.
• E) The firm's production costs increased in line with previous years.

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Definitions:

Resegmentation

Involves modifying the market segmentation of a product or service to reach new or more specifically targeted groups of consumers.

Perceptual Map

A visual representation used in marketing to plot the position of products or brands on a two-dimensional graph, based on consumer perceptions of key attributes.

Market Positions

The rank or standing of a company's product or brand in a particular market, relative to its competitors.

Firms Strengths

The unique assets, capabilities, or advantages that give an organization a competitive edge in the market.