For a given incremental increase in revenue from each of the following sources of growth,which source would generally create the most shareholder value?
A)Reducing costs.
B)Acquiring businesses.
C)Expanding an existing market.
D)Introducing new products to market.

Question

Quizplus · Accepted Answer

Introducing new products to market generally creates the most shareholder value because it has the potential to not only increase current revenue but also attract new customers and open up new markets. This can lead to sustained long-term growth for the company and higher returns for shareholders. Acquiring businesses may also create value, but it can come with a higher risk and may not always be successful. Expanding an existing market or reducing costs may have some short-term benefits, but they are unlikely to have as much impact on long-term shareholder value.

For a Given Incremental Increase in Revenue from Each of the Following