Which Two of the Following Are Examples of Collaboration to Build

question 16

Multiple Choice

Which two of the following are examples of collaboration to build barriers to entry or avoid substitution?

• A) Firms in an industry collaborate to invest in research and development.
• B) An industry develops a policy of only dealing with accredited suppliers.
• C) An industry develops a policy of dealing only with individual buyers.
• D) Trade associations promote an industry's generic features to speed up innovation.

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Definitions:

Business Activity

Any action that is engaged in for the primary purpose of making a profit, including operations, marketing, and production.

Planning

The process of outlining business objectives, strategies, and actions to achieve those objectives.

Treasury Bonds

Long-term government securities issued with the promise of payment upon maturity with a fixed interest rate.

Return

The income generated from an investment or the gain from an asset relative to the investment's or asset's cost.