Situation in which new business reduces an existing business of firm is classified as

A non-cannibalization effect
B cannibalization effect
C external effect
D internal effect

Correct Answer: cannibalization effect

Situation in which new business reduces an existing business of firm is classified as cannibalization effect. Market cannibalization is a sales loss caused by a company's introduction of a new product that displaces one of its own older products rather than increasing the company's overall market share.
Bissoy MCQ
#Commerce #Financial Management

Related Questions

Situation in which company replaces existing assets with new assets is classified as
A replacement projects
B new projects
C existing projects
D internal projects
Mr. Abul Kashem has set up a pultry firm with investment of TA, 50,000. He gets an average yearly income of TA. 36,000 from the firm, If he did not set up this poultry firm, with this investment he could set up a grocery shop. From such grocery he could get an yearly income of TA. 39,000. What is the opportunity cost of the Poultry firm that Mr. Kashem is running?
A TA. 50,000
B TA. 37,500
C TA. 39,000
D TA. 11,000
A business firm reduces the number of hours its employees work from 40 hours per week to 36 hours per week while continuing to pay the same amount of money. If an employee earned x taka per hour before the reduction in hours, how much does he earn hour under the new system?
A 1/10
B x/9
C 9x/10
D 10x/9
A business firm reduces the number of hours its emplyess work from 40 hours per week to 36 hours per week while continuing to pay the same amount of money. If an employee earned x taka per hour before the reduction in hours, how much does he earn per hour under the new system?
A 1/10
B x/9
C 9x/10
D 10x/9
Situation in which firm limits expenditures on capital is classified as
A optimal rationing
B capital rationing
C marginal rationing
D transaction rationing
Mr. Abul Kashem has set up a poultry firm with an investment of TA. 50.000 . He gets an average yearly income of TA. 36,000 from the firm. If he did not set up this poultry from such grocery he could get an yearly income of TA. 39,000 . What is the opportunity cost of the Poultry firm that Mr. Kashem is running?
A TA. 50,000
B TA . 37,500
C TA. 39,000
D TA. 11,000
A situation in which an outside group solicit proxies to take control of business is classified as
A outside group
B solicit process
C proxy fight
D controlled management
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A Medical quackery promises the well educated a cure for disease
B Medical quackery promises cures for all existing and even non-existing diseases of the well educated
C Well educated people in medical promises to find powerful cures for diseases
D Even well educated people are attracted to take cures for diseases that may or may not exist .
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A Medical quackery promises the well-educated a cure for diseases.
B Well-educated people in medicine promise to find powerful cures for diseases.
C Even well-educated people are attracted of fake cures for diseases that may or may not exist.
D Medical quackery promises cures for all existing and even non-existing diseases of the well-educated.
When the bituminous surfacing is done on already existing black top road or over existing cement concrete road, the type of treatment given is
A Seal coat
B Tack coat
C Prime coat
D Spray of emulsion

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