Which of the Following Is a Disadvantage of Employing a Multiple

question 132

Multiple Choice

Which of the following is a disadvantage of employing a multiple products,multiple market segments strategy if NOT implemented well?

• A)higher sales but lower profits
• B)reduced quality and higher prices
• C)meeting customer needs but at the expense of higher prices
• D)lower prices but with higher production costs
• E)higher quality but lower prices

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Definitions:

Bonds

Debt securities issued by entities (governments or corporations) to raise capital, promising to pay back with interest at a specified date.

Stocks

Shares of ownership in a corporation, giving holders a claim on part of the company's assets and profits.

Portfolio Construction

The process of selecting a mix of assets to achieve specific investment goals, taking into account risk tolerance and investment horizon.

Security Analysis

The process of examining and evaluating the financial health of securities for investment purposes, often involving fundamental or technical analysis.