A Firm That Is Willing to Maintain Its Market Share

question 82

Multiple Choice

A firm that is willing to maintain its market share, and not attack the leader and other competitors in an aggressive bid for further market share, is known as a ________.

• A) market challenger
• B) market leader
• C) market follower
• D) market nicher
• E) market entrant

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Definitions:

ROE

Short for Return on Equity, a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Money Center Banks

Large financial institutions that offer a wide range of financial services, located in major financial centers and dealing with high volumes of currency transactions.

Industry Structure

The organizational composition and competitive dynamics of an industry, including the number and size of companies, entry barriers, and the extent of rivalry.

Threat of Entry

In business, it refers to the potential for new competitors to enter a market and disrupt existing players, impacting profitability.