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Provide Two Examples of Businesses That Practice Low-Cost Strategies and Two

question 91

Essay

Provide two examples of businesses that practice low-cost strategies and two examples of businesses that practice differentiation strategies.


Definitions:

Return on Investment

A metric for assessing the effectiveness or gains of an investment, determined by dividing the net earnings by the investment's expense.

Minimum Return on Investment

The least amount of profit expected from an investment, below which an investment is not considered acceptable.

Investment Turnover

A measure of a company's ability to generate sales from its investment in assets, typically used to assess the efficiency of investment usage.

Profit Margin

A ratio of profitability calculated as net income divided by revenue, showing the percentage of each dollar of revenue that results in net income.

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