Way a Company Can Benefit from Implementing a Market Penetration

question 185

Multiple Choice

way a company can benefit from implementing a market penetration strategy would be to

• A) sell more products at a lower price.
• B) sell the same amount of product at a higher price.
• C) find a new market and sell the product at a much higher price.
• D) alter the product and sell it to a new market.
• E) reduce promotion and distribution costs to improve production efficiencies.

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Definitions:

Stock Dividend

A distribution of extra shares to shareholders, rather than distributing profits in cash.

Shares Outstanding

The aggregate amount of shares held by all stakeholders in a company, encompassing those retained by institutional investors and the restricted shares in possession of the company's executives and insiders.

Stock Price

This is the cost of a single share of a company’s stock, a direct reflection of what investors believe a company is worth.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares rather than cash, adjusting the ownership proportionately.