When an Organization Continues Serving the Same Clients by Offering

question 47

Multiple Choice

When an organization continues serving the same clients by offering the same product or service, maintaining market share, and sustaining the organization's current business operations, it is following a ________ strategy.

• A) renewal
• B) stability
• C) retrenchment
• D) growth

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Definitions:

Intangibles

Assets that cannot be touched or physically measured, such as patents, copyrights, and trademarks.

Amortized

The process of gradually writing off the initial cost of an asset over a period, thereby reducing its book value on a company's balance sheet.

Expensed

Expensed items refer to costs that are charged against revenue in the current accounting period instead of being capitalized or recorded as an asset.

Routine Accounting

The regular, day-to-day process of recording transactions, maintaining financial records, and preparing financial statements within a business.