Which of the Following Examples Represents the Best Application of a Firm's

question 46

Multiple Choice

Which of the following examples represents the best application of a firm's primary core competence?

• A) Honda Motors manufactures cars, motorcycles, lawnmowers, and snow blowers
• B) IBM provides both software services and manufactures computer hardware
• C) PepsiCo manufactures and distributes soft drinks and manages restaurant chains
• D) Microsoft sells operating system software and access to the internet through its MSN subscription service
• E) McDonalds sells hamburgers and pizza.

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Definitions:

Cheese

A dairy product derived from milk that is produced in a wide range of flavors, textures, and forms by coagulating the milk protein casein.

Substitutes

Products or services that can replace each other in use, causing the demand for one to increase when the price of the other rises.

Complements

Goods or services that are used together with another, such that the demand for one increases when the price of the other decreases.

Video Games

Electronic games played through the use of computers, consoles, or other devices, often involving interactive and multimedia elements.