The Highly Fragmented Chemical Industry in Europe Has Experienced Decreasing

question 84

Multiple Choice

The highly fragmented chemical industry in Europe has experienced decreasing profits in an industry reluctance to change the way it conducts business, especially in how it competes against lower-priced U.S. imports. This is an example of _________.

• A) competitive dissonance
• B) strategic apathy
• C) competitive inertia
• D) strategic inertia
• E) competitive apathy

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Definitions:

Bonds

Fixed-income investment products representing a loan made by an investor to a borrower, typically corporate or governmental.

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, usually with fixed dividends.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and is used to evaluate the cost of funding projects via equity financing.

Dividend

A disbursement by a company to its shareholders, often from its profit reserves.