Which of the Following Is True Regarding a Reactive Strategy

question 50

Multiple Choice

Which of the following is true regarding a reactive strategy?

• A)It is based on extensive customer and competitive knowledge.
• B)It seeks to gain a competitive advantage without direct confrontation.
• C)It refers to making competitive moves from an internal perspective with no real market knowledge.
• D)It leverages a knowledge advantage with respect to customers and competitors.
• E)It is an overreaction to competitor moves due to limited competitor knowledge.

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Definitions:

Cost Method

An accounting method used to value an investment, where the investment is recorded at its cost and adjustments are only made when there are declines in value or realized returns.

Equity in Earnings

The share of the profits or losses from investments in associates that a company accounts for using the equity method.

FVTPL

Fair Value Through Profit or Loss, a classification under International Financial Reporting Standards for financial assets held for trading or designated upon initial recognition as measured at fair value, with changes in fair value recognized in profit or loss.

FVTOCI

stands for Fair Value Through Other Comprehensive Income, a classification under IFRS for financial assets that are measured at fair value with fluctuations recorded in other comprehensive income.