Turner Electronics is a ten-year-old company. In the past decade, the company hasn't created any innovative products that have helped set it apart from the rest of its competitors
However, when any of its products need to be repaired or fine-tuned, it offers its customers top-notch product checks. As a result, the company has managed to retain its wide customer base. Which of the following strategies is Turner Electronics using in this scenario?
a. Product development
b. Diversification
c. Market penetration
d. Service differentiation
ANSWER: d
A product/service differentiation competitive advantage exists when a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.
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Which of the following costs incurred internally to create an intangible asset is generally expensed?
a. Research and development costs. b. Filing costs. c. Legal costs. d. All of the above.
Which of the following transactions would be shown in the non-cash investing and financing activities section of the statement of cash flows?
A) sold equipment with book value of $6,500 in exchange for $6,500 cash B) settled a long-term note payable by issuing common stock C) issued 20,000 shares of stock at $4 per share D) purchased land for $30,000 cash