Focused low-cost and focused differentiation strategies carry very little risk for the companies that make use of them.

Roger wants to buy a new car, so he borrows money from the bank. Several months later, he

sells his car to Lisa, who agrees to pay the bank loan. A) Roger is an intended third-party beneficiary. B) Lisa is an intended third-party beneficiary. C) Lisa is an incidental third-party beneficiary. D) The bank is an intended third-party beneficiary. E) The bank is an incidental third-party beneficiary.

A firm is considering relaxing credit standards which will result in an increase in annual sales from $3 million to $3

75 million, a decrease in the cost of annual sales from $2,225,000 to $2,000,000, an increase in additional profit contribution from sales of $10,000, and an increase in the average collection period of 15 days, from 20 to 35 days. The bad debt loss is expected to increase from 1 percent to 1.5 percent of sales. The firm's required return on investments is 15 percent. The net result of the firm relaxing its credit standards is ________. (Assume a 360-day year.) A) $10,000 B) -$16,250 C) -$26,875 D) -$16,875