Which of the Following Is True of a Differentiation Strategy

question 26

Multiple Choice

Which of the following is true of a differentiation strategy?

• A) It requires a firm to offer a combination of cost benefits that appeals to the customers.
• B) It is generally pursued by all small businesses.
• C) It is aimed at mass markets.
• D) It is used by businesses that pursue a very low cost operation.

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Definitions:

Capital Budgeting

The method of analyzing and choosing long-term investment opportunities that align with the objective of maximizing shareholder wealth.

Investment Opportunities

Potential investments that a company or individual could make to earn a return.

Limited Partner

An investor in a partnership who is not involved in day-to-day management and whose liability is limited to the amount invested in the partnership.

Cash Flows

The gross total financial exchange in and out of an enterprise, significantly altering its liquidity capacity.