When a Firm Produces Only a Single Product or Service

question 19

Multiple Choice

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids

• A) the extra cost of developing and producing additional versions of the product.
• B) creating a customer service gap.
• C) indirect distribution and logistics problems.
• D) restructuring the firm's strategic planning.
• E) amortization costs of product enhancements.

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Definitions:

Proprietor

The owner of a business establishment, a shop, or any other commercial enterprise.

Sole Proprietorship's Profits

The total income a sole proprietorship generates after expenses are deducted, belonging entirely to the business owner.

Deception

The act of misleading or tricking someone into believing something that is not true, often for personal gain.

Franchisor

A business entity that grants another party the right to operate a business using its trademark, products, and business model.