A Producer of Electrical Components Combined Electrical Supply Wholesalers and Manufacturers

question 91

Multiple Choice

A producer of electrical components combined electrical supply wholesalers and manufacturers of electrical equipment into the same market segment-one of several segments it was targeting. Soon it lost the manufacturers' business to a competitor. It seems that the firm failed to consider the risk of

• A) too much aggregating.
• B) insulting the manufacturers by putting them in the same market segment with the wholesalers.
• C) picking market segments based on qualifying dimensions.
• D) selecting market segments that were not substantial.
• E) using too many segmenting dimensions.

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Definitions:

Sarbanes-Oxley Act

A federal law established in the United States in 2002 that aims to safeguard investors through the enhancement of the precision and dependability of company reports.

Outside Directors

Board members who are not part of the company's day-to-day operations, providing independent oversight and insight.

Publicly Traded

Refers to a company whose shares are available for purchase by the general public on a stock exchange.

Registration Statement

A set of documents, including a prospectus, that a company must file with the U.S. Securities and Exchange Commission before offering securities to the public.