According to Michael Porter, which of the following is true of differentiation as a generic strategy?

A) It is an effective strategy for obtaining above-average financial returns because unique products often command premium price.
B) It offers an opportunity for small, specialized companies to grow while retaining their narrow focus on highly differentiated products.
C) It requires companies to construct the most efficient facilities in terms of scale or technology and obtain the largest share of market.
D) It has become increasingly popular in recent years as a result of the popularization of the experience curve concept.

A

Business

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If the firm has earnings available to common shareholders, it has two choices of what to do with these earnings: it can either ________ or ________

A) pay dividends to the common shareholders; retain the earnings to finance future projects and investments. B) pay dividends to the preferred shareholders; repurchase common stock. C) pay dividends to the bondholders; retain the earnings to finance future projects and investments. D) pay dividends to the common shareholders; pay dividends to the bondholders.

Business

Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers. Helge purchases inventory from distributors at trade conventions. Each time Helge makes a purchase, the company records the suppliers name, address, date, specific items purchased, price paid for each, and the total amount spent. Helge later researches the inventory items to set the customer price. The company

assigns an inventory number to each item purchased and records the customer price for each item. Helge buys price tags and display supplies from Alwin Incorporated, a company that sells them at all trade conventions. All inventory and supplies purchases are immediately paid for with cash or with checks from a bank account in Helge's name. All cash received from sales are also deposited to the same bank account. Several times a year Helge rents display space at dealer conventions. A deposit is always required, and the entire fee is due the day the convention starts. Helge records the deposit and final payment, along with the convention's name and address, in the same worksheet on which purchases of inventory and supplies are recorded. Which of the following would not be an attribute in the Inventory table? A) Total amount of purchase. B) Price paid for inventory. C) Asking price. D) Inventory number.

Business