When a Firm Is Overly Dependent on One or More

question 106

Multiple Choice

When a firm is overly dependent on one or more products or markets, and the intensity of rivalry in that market is intense, the firm may wish to __________ by making an acquisition.

• A) increase new product speed to market
• B) broaden its competitive scope
• C) increase its economies of scale
• D) overcome entry barriers

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Definitions:

Perceived Market Share

The percentage of an industry or market's total sales that is believed to be controlled by a company, as perceived by individuals or entities.

Actual Market Share

The current portion of a market controlled by a particular company, measured by either to the volume or value of its sales.

Perfect Complements

Goods that are consumed together in fixed proportions because the consumption of one good enhances the value of the other.

Operating Systems

Software that manages computer hardware and software resources and provides common services for computer programs.