Which of the Following Correctly Identifies the Motivation of Firms

question 136

Multiple Choice

Which of the following correctly identifies the motivation of firms using a market segmentation strategy?

• A) Firms can avoid the government's anti-trust laws by selecting a small slice of a larger market.
• B) This strategy enables a firm to identify common traits in different consumer groups.
• C) With limited resources, firms can better satisfy the wants and needs of a smaller target market.
• D) Government regulations require firms to maintain accurate records to show that the firm has not discriminated against a market segment.

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Definitions:

Business Expectations

Business expectations relate to the outlooks and forecasts that businesses have regarding future economic conditions, which can influence their strategic planning and operations.

Progressive Tax

A tax system in which tax rates increase as the taxable amount increases, placing a higher burden on those with higher incomes.

Tax Receipts

The revenue collected by a government from taxes, which can include income, sales, and property taxes among others.

Income

The amount of money or goods and services that one receives in return for providing labor, producing goods, or investing capital.