Managing for Long-Run Profits Implies That a Company Will

question 99

Multiple Choice

Managing for long-run profits implies that a company will

• A)give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
• B)maintain a given price range to ensure there is no loss of customers over time, even if the profit margin declines.
• C)invest excess cash in bonds and certificates of deposit in order to counteract any inflationary economic changes in the future.
• D)reinvest all profits into market research or product research rather than returned to shareholders.
• E)drop all products, product lines, or divisions that cannot maintain their pricing goals.

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Definitions:

Fridge Apps

Applications designed for smart refrigerators that assist in managing groceries, recipes, and food inventory directly from the fridge's interface.

Discontinuous Innovation

A type of innovation that represents a significant breakthrough or creation of a completely new market, often transforming consumer habits.

Continuous Innovation

The ongoing process of making incremental improvements or updates to products, services, or processes to maintain competitiveness.

Spontaneous Innovation

The process of creating new and inventive ideas or products without a premeditated plan, often resulting from sudden inspiration.