Which of the Following Is NOT an Explanation for Why

question 40

Multiple Choice

Which of the following is NOT an explanation for why MICRO-marketing may cost too much in some firms?

• A) Some managers make decisions as if customers are eagerly awaiting any product they produce.
• B) Production managers focus on designing products that are easy to make.
• C) Financial managers reduce finished-product inventories and force "out of stock" situations.
• D) Marketing managers do target marketing.
• E) Some managers don't see a business as a "total system" focused on customers.

---

Definitions:

Cost of Capital

The vital rate of earnings a company must generate from its investment plans to preserve its standing in the market and appeal for investments.

Treasury Bills

Short-term government securities with maturities ranging from a few days to 52 weeks, sold at a discount from their face value.

Financial Option

A contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price.

Fixed Price

An agreed upon price for goods and services that remains constant, unaffected by the fluctuations in the market or resource costs.