Lunar Inc and Qwerty Inc

question 72

Multiple Choice

Lunar Inc. and Qwerty Inc. are competitors in the production of laptops for professionals. To improve sales, the management of Lunar decides to adopt the strategy of market penetration and the management of Qwerty decides to adopt market development.
-Which of the following is Lunar Inc.most likely to do as part of its strategy?

• A)It will declare discounts on its products.
• B)It will expand its operation to new countries.
• C)It will start producing laptop accessories.
• D)It will launch a series of laptops exclusively designed for children.
• E)It will roll back less successive models of laptops.

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Definitions:

Prime Rate

The interest rate that commercial banks charge their most credit-worthy customers, often used as a benchmark for other rates.

Credit Worthiness

An assessment of a borrower's ability to repay a loan or debt based on their financial history and current status.

FICO Score

A credit score measuring a borrower's likely ability to repay a loan. A person’s FICO score will range between 300 and 850. A score of 700 or more indicates that the borrower’s credit standing is good. FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score.

Mortgage Default Rate

The percentage of borrowers who fail to make their mortgage payments on time, risking foreclosure.