Luiss Master's Admission Test Practice Questions - Luiss Admission Test For Master's Degree Courses (Luiss Guido Carli University) Exam

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If a firm enters Market X, it must increase its marketing expenditure. If a firm increases its marketing expenditure, its cash reserves will decline. Firm A's cash reserves have NOT declined. What logical conclusion can be drawn regarding Firm A?

Firm A did not enter Market X. Firm A entered Market X but cut capital expenditure. Firm A doubled its marketing expenditure. Firm A will enter Market X next quarter.

Correct Answer:

Firm A did not enter Market X.

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