A Competitive Strategy of Striving to Be the Low-Cost Provider

question 13

Multiple Choice

A competitive strategy of striving to be the low-cost provider is particularly attractive when

• A)buyers are not price sensitive.
• B)the industry is made up of a large number of or equal-sized rivals.
• C)there are many ways to achieve product differentiation that have value to buyers.
• D)price competition is especially vigorous,buyers have low switching costs,and the majority of industry sales are made to a few large-volume buyers.
• E)switching costs are high,price competition is strong,and buyers tend to use the industry's products in many different ways.

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Definitions:

Stockholders

Individuals or entities that own shares of stock in a corporation, granting them certain rights and privileges.

Internal Controls

Procedures and policies implemented by a company to safeguard its assets, enhance the reliability of its accounting records, ensure compliance with laws, and achieve effective and efficient operations.

Fraud Triangle

A model explaining the factors that cause someone to commit occupational fraud, consisting of opportunity, pressure, and rationalization.

Rationalization

The process of reorganizing a company to increase efficiency or reduce costs, often involving layoffs and restructuring.