Which of the Following Is Not an Example of an External

question 45

Multiple Choice

Which of the following is not an example of an external threat to a company's future profitability?

• A) Likely entry of potent new competitors
• B) The lack of a well-known brand name with which to attract new customers and help retain existing customers
• C) Unfavorable shifts in buyer demographics and tastes
• D) Costly new regulatory requirements
• E) Increase in interest rates

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Definitions:

Multiplier

The ratio of change in an economic output to a change in an input, such as the increase in public spending leading to a larger increase in the national income.

Consumption Spending

Expenditures by households on goods and services, excluding purchases of new housing.

Income

The money received, especially on a regular basis, for work or through investments.

Investment Accelerator

An economic theory suggesting that an increase in national or private investment spending stimulates overall economic growth, potentially leading to further increases in investment.