When Dealing with a Declining Industry, Which of the Following

question 61

Multiple Choice

When dealing with a declining industry, which of the following strategies should be used if a company has distinctive strengths that allow it to capture market share or if the speed of decline and the intensity of competition is moderate?

• A) Divestment
• B) Harvest
• C) Price signaling
• D) Leadership
• E) Capacity control

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Definitions:

Savings

The portion of income not spent on current consumption, often put aside for future use or investment.

Business Firms

Organizations engaged in commercial, industrial, or professional activities, typically structured as partnerships, sole proprietorships, or corporations.

Corporations

Legal entities that are separate from their owners, with the right to own property, enter contracts, and engage in business.

Proprietorships

Businesses that are owned and operated by a single individual, with no legal distinction between the owner and the business entity.