The Greatest Disadvantage of the Focused Strategy Is

question 182

Multiple Choice

The greatest disadvantage of the focused strategy is

• A) customers become knowledgeable
• B) lack of repeat buyers
• C) availability of a singular organization design
• D) the customer niche may shift toward a broader market

Understand capital budgeting basics, including the definition and implications of internal rate of return, and net present value.

Recognize and evaluate the advantages and disadvantages of short payback periods in investment decisions.

Comprehend the necessity of incorporating the time value of money in investment decision-making.

Identify and categorize costs relevant to specific business decisions, including sunk costs, incremental costs, and opportunity costs.

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Definitions:

Interest Method

A financial calculation used to determine the amount of interest due or earned over a specific period of time, considering factors like principal, rate, and time.

Annuity

An investment vehicle that provides a consistent series of payments to a person, mainly serving as a source of income for those who have retired.

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Present Value

The assessed present-day value of money to be received in the future or a pattern of cash inflows, factoring in an established rate of return.