Which of the Following Represents a Competitive Intelligence Practice That

question 82

Multiple Choice

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

• A) A firm hires a competitor's employees and asks them to share the names and addresses of business contacts from their previous company.
• 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 city council building with his wife, an executive with a construction firm bidding on the contract.
• D) A marketing manager sells confidential plans for a company's expansion into the Far East to a firm that is not a direct competitor.

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Definitions:

Capital Structure

Capital structure is the mixture of a company's long-term debt, specific short-term debt, common equity, and preferred equity which finance its overall operations and growth.

Leverage

Taking on debt to magnify the prospective profits of an investing activity.

Acquisition Price Premium

This refers to the amount by which the purchase price of a company exceeds the pre-acquisition market value of its shares, often reflecting the buyer's estimate of the target's intrinsic value or synergies to be realized.

Synergies

The potential additional value generated from combining two firms, often resulting in cost savings or enhanced revenue.