Which of the Following Describes a Company That Is Following

question 140

Multiple Choice

Which of the following describes a company that is following a focus strategy?

• A)a software company that makes a wide variety of games and financial products
• B)a software company that makes games for a wide audience
• C)a software company that makes financial products for accountants, consumers, and businesses
• D)a software company that makes financial products for accountants only

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Definitions:

Sensitivity of EPS

The degree to which a company's earnings per share (EPS) is affected by fluctuations in its operating income.

ROE

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Target Capital Structure

The optimal mix of debt, preferred stock, and common equity that a company aims to maintain for financing its operations.

Debt-equity Ratio

A gauge of how shareholders' equity and debt proportionately finance a company’s assets.