Which of the Following Statements About the Competitive Environment Is

question 349

Multiple Choice

Which of the following statements about the competitive environment is FALSE?

• A) Competition-free environments are rare.
• B) Marketing managers should choose strategies that avoid head-on competition.
• C) A firm that has a marketing mix that its target market sees as better than its competitors' has a competitive advantage.
• D) Over the long run, most product-markets tend toward monopolistic competition.
• E) In a competitor analysis, the firm's first step should be to identify all potential competitors.

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that might not be collected, reducing the total value of accounts receivable by a corresponding amount.

Credit Sales

Sales made on credit, meaning payment is to be received after the delivery of goods or services.

Credit Card Discount

Fee charged by the credit card company for its services.