Which of the Following Is NOT True of a Company

question 100

Multiple Choice

Which of the following is NOT true of a company that succeeds in differentiating its product offering from those of its rivals?

• A) It can avoid having to compete on the basis of simply a low price.
• B) It commands a premium price for its product.
• C) It usually increases unit sales.
• D) It gains buyer loyalty to its brand.
• E) It attracts mainly price-conscious buyers.

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Definitions:

Investment Opportunity

A financial investment or venture with the potential for yielding returns, involving the allocation of resources with the expectation of future financial gains.

Return On Investment

A measurement of the profitability of an investment, calculated by dividing net profit by the initial capital cost.

Average Operating Assets

The average value of those assets used for the normal operation of a company over a specific period, often used in return on investment calculations.

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross income.