TOMS Shoes Generates Interest in Its Products Without a Large

question 8

Multiple Choice

TOMS Shoes generates interest in its products without a large advertising budget.It uses a Facebook page to create buzz.This is an example of a

• A) strategic action.
• B) tactical action.
• C) focused advantage.
• D) differentiated focus.

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Definitions:

Operating Assets

Assets that are used for the day-to-day operations of a business, contributing to its ability to generate revenue.

Return On Investment

A measure of the financial gain or loss on an investment relative to the amount of money invested, usually expressed as a percentage.

Contribution Margin Ratio

The ratio of contribution margin (sales minus variable costs) to sales revenue, indicating the percentage of each sales dollar available to cover fixed costs and profit.

Fixed Expenses

Expenses that remain the same regardless of the level of production or sales activities.