A Group of Like-Minded Individuals Are Discussing the Best Strategy

question 56

Multiple Choice

A group of like-minded individuals are discussing the best strategy for marketing their new product with the limited amount of funds available. One safe strategy would be to simply follow the same marketing campaign used with last year's products. However, some of the group members have expressed support for a new, untested strategy that will cost more money but could generate much greater sales. In this scenario, which of the following is most likely?

• A) Because of the presence of others, a "safe middle ground" will be chosen.
• B) Because they are all like-minded, they will likely revert to last year's marketing strategy.
• C) Because they have similar ideas, but each wants to stand out somewhat, the riskier new strategy is more likely to be selected.
• D) Because they have similar ideas, increased disagreement is more likely, as each becomes dissatisfied with his or her previous position.

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Definitions:

Accounting Method

An accounting method is a set of rules that determine how and when income and expenses are recorded in the financial statements.

Investments

Assets purchased with the expectation that they will generate income or appreciate in the future.

Financial Statements

Formal records of the financial activities and position of a business, presenting its operations, financial condition, and cash flows.

Consolidated Financial Statements

Financial statements that show the aggregated financial position and results of operations for a parent company and its subsidiaries.