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Situation in which new business reduces an existing business of firm...

This question belongs to Commerce Financial Management
Financial Management
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Situation in which new business reduces an existing business of firm is classified as

Answer & Solution
Correct Answer: Option B
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.
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