If Microsoft Announces Plans for a New-Product Development, Smaller Firms

question 38

Multiple Choice

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ defense strategy.

• A) preemptive
• B) counteroffensive
• C) mobile
• D) flank
• E) contraction

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Definitions:

Closed-End Funds

A type of investment fund with a fixed number of shares, traded on the stock exchange, unlike open-end funds which continuously issue new shares.

Premium

The amount by which the price of a financial instrument, such as an insurance policy or bond, exceeds its face value or nominal cost.

NAV

Net Asset Value; the total value of a fund's assets minus its liabilities, often used in the context of mutual funds.

Closed-End Mutual Funds

Investment funds with a fixed number of shares that are traded on stock exchanges, unlike open-end funds which do not have a fixed number of shares.