Prahalad and Hammond Have Identified Several Assumptions and Misconceptions About

question 74

Multiple Choice

Prahalad and Hammond have identified several assumptions and misconceptions about the "bottom of the pyramid" (BOP) that need to be corrected. All of the following mistaken assumptions are correct except:

• A)The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods.
• B)The goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit.
• C)The poor have no money.
• D)People in BOP markets cannot use advanced technology.
• E)Global companies that target BOP markets will be criticized for exploiting the poor.

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Definitions:

NASDAQ

A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.

Over-The-Counter Market

A decentralized market where securities not listed on major stock exchanges are traded directly between parties.

Dealers

Individuals or firms in the financial markets that act as principals in trading, buying, and selling securities for their own account.

Third Market

Trading venue for exchange-listed stocks that occurs off the official exchange, often involving large institutional investors through over-the-counter (OTC) transactions.