Which of the Following Statements Is True for Companies That

question 74

Multiple Choice

Which of the following statements is true for companies that employ cost strategies?

• A)They focus on high-quality production rather than efficient production.
• B)They are very specific in the skills they require from their employees.
• C)They shy away from investing in training employees in the skills they need.
• D)They seek greater creativity by providing broader career paths to employees than companies that employ differentiation strategy.
• E)They encourage their employees to take greater risks.

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Definitions:

Lease Contract

A legal agreement in which one party permits another to use property, equipment, or facilities for a specified period in exchange for payment.

Ownership

The act, state, or right of possessing something, reflecting a legal or equitable title to an asset or property.

Premium Amortization

The process of gradually writing off the premium paid on bonds or other financial instruments over the life of the investment.

Bond Amortization Schedule

A table showing the periodic payments of an amortizing bond, including the allocation of each payment into interest and principal components over the life of the bond.