A Business Firm Goes to the Trouble and Expense of Segmenting

question 65

Multiple Choice

A business firm goes to the trouble and expense of segmenting its markets when

• A)it changes its advertising campaign.
• B)competitors enter the marketplace.
• C)the environment becomes uncertain.
• D)it expects that this will increase its sales,profit,and return on investment.
• E)there is a recessionary economic environment.

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Definitions:

Fiscal Period

A specific period of time used by governments and businesses for accounting and financial reporting purposes.

Expired Insurance

Refers to insurance policies that have reached the end of their coverage period and are no longer in effect.

Adjusting Entry

A journal entry made in an accounting period to adjust income or expense accounts to accurately reflect the revenues earned and expenses incurred during that period.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.