| Verified Q&A | Versions A & B | Exam Prep |
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1. If a company experiences market saturation for its flagship product, what
strategic action should it consider to maintain profitability?
The company should focus exclusively on reducing production costs.
The company should stop all marketing efforts for the product.
The company should explore product diversification or
enhancement to attract new customers.
The company should cut prices to increase sales volume.
2. A feasibility study is:
Conducted during the identification phase of a project, verifies
whether the proposed project is well-founded and is likely to meet the
needs of its intended target groups/beneficiaries
Conducted during the formulation phase, verifies whether the
proposed project is well-founded and is likely to meet the needs of
its intended target groups/beneficiaries.
Conducted during the evaluation phase of a project, ensures that all
problems are identified and alternative solutions are appraised and
selects a preferred alternative on the basis of quality factors
Conducted during the formulation phase of a project, ensures that all
problems are identified and alternative solutions are appraised and
selects a preferred alternative on the basis of quality factors
3. Describe how a unique value proposition can influence a company's
competitive advantage.
A unique value proposition differentiates a company from its
, competitors, attracting customers and fostering loyalty.
A unique value proposition is irrelevant to customer preferences.
A unique value proposition solely focuses on reducing costs.
A unique value proposition is only about advertising.
4. Which of the following describes a saturated market?
Many people want this product and haven't purchased it yet.
The prices of competitors are very high.
Most potential buyers already have a product that satisfies this
need or want. Please select the best answer from the choices
provided
Most potential buyers have not heard of the product and don't know
it exists.
5. The break-even point in financial analysis is the point of activity when:
total revenue and total expenses are equal
fixed expenses and variable expenses are less than total revenue
total expenses are less than total income
the occupancy levels is greater than 75 percent
6. What is the main purpose of a cash flow statement in business?
To provide information about the cash inflows and outflows of a
company.
To analyze the company's market share.
To summarize the company's revenue and expenses.
To evaluate the company's long-term investments.