A Focus Strategy Must Not Include Elements of Differentiation and Overall

question 29

True/False

A focus strategy must not include elements of differentiation and overall cost leadership in order to be successful.

---

Definitions:

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Retained Earnings

The cumulative amount of net income earned by a company that is kept within the company for reinvestment rather than being paid out as dividends to shareholders.

Accrual-Based Net Income

A measure of a company's financial performance that includes all earned revenues and incurred expenses, regardless of when cash transactions occur, according to the accrual principle.

Operating Income

The income generated from the primary activities of a business, not including the expenses from interest and taxes.