Jenna Recommended That the Retailer Work to Achieve Cost Advantages

question 72

Multiple Choice

Jenna recommended that the retailer work to achieve cost advantages over competitors and rely on lower prices to gain customers and market share. What type of strategy is Jenna suggesting?

• A) differentiation
• B) product supply
• C) cost leadership
• D) focused

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Definitions:

Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by shareholder equity.

Return On Assets

A measure of how effectively a company uses its assets to generate profit, calculated as net income divided by total assets.

Return On Equity

A measure of the profitability of a business in relation to the equity, calculated by dividing net income by shareholders' equity.

Profit Margin

A financial metric used to assess a company's profitability by comparing net income to sales. It's often expressed as a percentage indicating how much of each dollar in sales a company keeps as profit.