A Strategic Groups Consists Of

question 63

Multiple Choice

A strategic groups consists of:

• A)Firms that follow the same generic strategies (e.g.cost leadership or differentiation)
• B)Firms within an industry that have similar strategies
• C)Firms that occupy the same industry segment
• D)Firms that target the same customer groups

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Definitions:

Modified Cash Basis

An accounting method that combines elements of both cash and accrual accounting techniques.

Warranty Expense

Costs recognized by a company in accordance with its policy to repair or replace defective products during a warranty period.

Matching Concept

The Matching Concept in accounting states that expenses should be matched with the revenues that they helped to generate, in the same reporting period.

Uninsured Risk

Risk that has not been covered by an insurance policy, leaving the individual or business exposed to potential financial loss.