A Company That Succeeds in Differentiating Its Product Offering from Those

question 47

Multiple Choice

A company that succeeds in differentiating its product offering from those of its rivals can usually

• A) avoid having to compete on the basis of simply a low price.
• B) charge a price premium for its product (because buyers see its differentiating features as worth something extra).
• C) increase unit sales (because of the attraction of its differentiating product attributes).

• D) gain buyer loyalty to its brand (because some customers will have a strong preference for the company's differentiating features).
• E) All of these.

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Definitions:

Long-Term Investments

Assets purchased by a company intended to be held for more than one year for the purpose of earning a return.

Special Purpose

An activity or function created for a particular objective or for a specific job.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.

Held-To-Maturity

A classification for investments in fixed-income securities that an investor intends and is able to hold until maturity, recognizing unrealized gains or losses in the financial statements.