Which of the Following Represents a Competitive Intelligence Practice That

question 153

Multiple Choice

Which of the following represents a competitive intelligence practice that is both legal and ethical?

• A) A firm hires a competitor's employee and asks that employee to share the names and addresses of business contacts from his/her previous job.
• B) An executive attends a trade show solely to obtain a competitor's brochures, listen to sales pitches, and ask questions about the competitor's products.
• C) A city council member shares information about the decision process for selecting a contractor to build a new library wing with his wife, an executive with a construction firm bidding on the contract.
• D) A marketing manager at Smith-Phillips, Inc., sells confidential plans for the company's expansion into the Far East to a firm that is not a direct competitor.

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Definitions:

Marginal Revenue

The additional income earned by a company from selling one more unit of a good or service, reflecting the benefit of increased production.

Marginal Cost

The boost in expense for crafting one more unit of a product or service.

Profits

The financial gain realized when the revenue earned from economic activities exceeds the expenses, costs, and taxes associated with sustaining the activity.

Firms

Business entities engaged in commercial, industrial, or professional activities, either for profit or as a nonprofit.