If a Firm Chooses to Succeed by Building Long-Term Relationships

question 6

Multiple Choice

If a firm chooses to succeed by building long-term relationships with the firm's customers by offering either the best price, best product, or best service, it implies that the firm's organizational strategy is:

• A) based on competitive parity.
• B) based on value.
• C) based on products and markets.
• D) based on selling.

---

Definitions:

Capital Structure

The composition of a company's funding, including debt, equity, and other financial instruments, which defines how a company finances its overall operations and growth.

Debt

Money that is owed or due to be paid, typically resulting from borrowing funds to be repaid with interest.

Financial Leverage

Financial leverage is the use of borrowed money (debt) to amplify the potential returns from an investment or project.

Leverage

The use of borrowed funds to increase the potential return of an investment.