Figure 2-5 -Consider Figure 2-5 Above.A Small Family Owns Gelato Business in Business

question 242

Multiple Choice

Figure 2-5
-Consider Figure 2-5 above.A small family owns gelato business in the town's favorite place where parents and children stop on their way home from work to relax or school to play.However,the business owner is barely making ends meet.He experiments by purchasing a case of large take-home containers so customers can not only stop on the way home from school or work but also enjoy the gelato after dinner at home.Profits begin to rise.This is an example of a __________ strategy that would be found in quadrant __________.

• A) product penetration; "A"
• B) market penetration; "A"
• C) product development; "B"
• D) market development; "B"
• E) market development; "C"

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Definitions:

Trade Deficit

An excess of imports over exports.

Capital Flight

A large and sudden reduction in the investment of assets in a country, often due to political or economic instability.

Exchange Rate

The worth of one currency when converted to another.

Interest Rate

The rate at which a borrower pays interest for the money borrowed from a lender.