The Main Difference Between Naming Broad Product-Markets and Market Segmentation

question 151

Multiple Choice

The main difference between naming broad product-markets and market segmentation is:

• A) naming is a computerized process, while segmentation requires more thought.
• B) naming is concerned with customers, while segmentation is concerned with product features.
• C) naming involves breaking down markets, while segmentation involves aggregating customers with similar needs.
• D) naming involves looking for similarities, while segmentation involves looking for differences.
• E) None of the above is true.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and receiving dividends.

Flotation Costs

Flotation costs are the total fees and expenses incurred by a company in issuing new securities.

Capital Cost

The one-time expenditure on physical assets like buildings, machinery, and equipment, as well as the costs associated with bringing a project to a commercially operable status.

Issuance

The process of offering new securities for sale to investors, often through stocks or bonds, to raise capital.