A Business Firm Segments Its Markets When This Strategy Increases

question 51

Multiple Choice

A business firm segments its markets when this strategy increases its sales revenue,profit,and ROI.When its increases in expenses more than offset the potentially increased revenues from segmentation,it should:

• A)terminate as many employees as possible to save money.
• B)reduce production costs, which will lower quality.
• C)act as its own distributor.
• D)not attempt to segment its market any further.

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Definitions:

Government Support

Financial or non-financial aid provided by the government to businesses, industries, or individuals in forms such as grants, loans, or tax incentives.

NCI

NCI, or Non-Controlling Interest, refers to the share of ownership in a subsidiary that belongs to shareholders other than the parent company.

Entity Method

An accounting technique used in consolidations, treating the parent and subsidiary as separate entities for the calculation of minority interest and consolidated net income.

Non-Controlling Interest

The portion of equity in a subsidiary not held by the parent company, reflecting the minority shareholders' share of the profits and losses.