An Example of a Competitive Strategy Is

question 55

Multiple Choice

An example of a competitive strategy is

• A) Hewlett-Packard offers larger discounts to students to compete against Dell Computers.
• B) Sprint offers lower connection fees to compete against Verizon.
• C) Ford Motor offers larger rebates and zero percent financing to compete against General Motors.
• D) All of the answer choices are correct.
• E) None of the answer choices is correct.

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Definitions:

Conversion Ratio

In finance, it is the number of shares a holder can obtain by converting a convertible security into common stock.

Market Conversion Value

The value of a convertible security if it is converted into a specified number of shares of common stock, based on the current market price.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which does not necessarily reflect its market value.

Credit Default Swap

A financial derivative allowing an investor to "swap" or offset the risk of credit loss from the default of a borrower.