When a Firm Develops Ways to Differentiate Their Products and Services

question 84

Multiple Choice

When a firm develops ways to differentiate their products and services from their competitors', it is pursuing a _______________ strategy.

• A) differentiation
• B) alliance
• C) innovation
• D) marketing

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Definitions:

Profit Center

A separate business unit or department within an organization that is responsible for generating its own revenue and profits.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in a net income or loss.

Controllable Expenses

Costs that can be influenced by the decisions of a manager.

Profit Center Management

The administration of a segment of a business that is directly responsible for its own revenue and expenses, aiming to maximize profits.