Identify the INCORRECT Statement About Approaches to Market-Oriented Strategy Planning

question 88

Multiple Choice

Identify the INCORRECT statement about approaches to market-oriented strategy planning.

• A) It's usually safer to be a combiner.
• B) Cost considerations encourage aggregating.
• C) Demand considerations encourage less aggregating.
• D) The approach a firm uses depends in part on the firm's resources.
• E) Generally, it is better to try and satisfy some customers very well instead of many just fairly well.

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Definitions:

Inventory Turnover

A ratio indicating how many times a company’s inventory is sold and replaced over a specific period.

ACP

Average Collection Period, indicating the average number of days it takes for a company to collect its receivables.

Pledging Receivables

Pledging receivables involves using the money owed to a company by its customers as collateral for a loan.

Effective Cost

Effective cost refers to the total cost of a financing option when all charges, fees, and interest payments are taken into account.