Businesses Following a Reactor Strategy

question 30

Multiple Choice

Businesses following a reactor strategy:

• A)attempt to maintain a stable line of products,but follow a selected set of promising new developments in its industry
• B)try to protect their domain by offering lower prices,higher quality or better services than competitors
• C)are not as willing to assume the risks of a new product or market development as its competitors
• D)respond rapidly to early signals concerning areas of opportunity,which often lead to new rounds of competitive actions

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Definitions:

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding expenses and revenues from financing and investing activities.

Residual Income

The income that remains after deducting all required costs of capital and operating expenses, representing the excess earnings generated.

Required Rate Of Return

The minimum expected yield by investors for providing capital to a company, influenced by risk and market conditions.

Net Operating Income

The profit generated from a company's regular business operations, excluding revenues and expenses from non-operating activities.