If a Company Wants to Be a Price-Taker,which of the Following

question 3

Multiple Choice

If a company wants to be a price-taker,which of the following strategies should be taken?

• A) Enter a competitive market and focus on cost cutting.
• B) Produce a unique product.
• C) Exploit the value of a fashionable brand name.
• D) Differentiate the product clearly from the competitors.

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Definitions:

Accounts Receivable Turnover

A measure of how efficiently a company collects its outstanding credit sales, calculated as sales divided by average accounts receivable.

Accounts Payable Period

The amount of time it takes for a business to pay its suppliers after receiving goods or services, reflecting the company's payment policy towards its creditors.

Accounts Receivable

Sum owed by clients to a company for goods or services that have been dispatched or provided, with payment still due.

Cost of Goods Sold

Cost of Goods Sold (COGS) is the direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the good.