A Substitute Poses a Greater Threat When It ________

question 19

Multiple Choice

A substitute poses a greater threat when it ________.

• A)operates in a different market in comparison with the focal product
• B)has a similar nature to the focal product but operates in a different target market
• C)provides the same focal product or service through different means
• D)does not directly impact the profitability of another product or service

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Definitions:

Record Holders

Individuals or entities officially registered as the owners of securities or assets on the issuing company's books.

Quarterly Dividend

A dividend paid by a corporation to its shareholders every three months.

Clientele Effect

This concept suggests that changes in a company’s dividend policy can attract different types of investors, based on their preferences for dividend payouts.

Dividend Yield

A fiscal ratio indicating the annual dividends a company dispenses in relation to its stock price.