A "Fast-Second Strategy" Means That a Dominant Firm in an Industry

question 229

Multiple Choice

A "fast-second strategy" means that a dominant firm in an industry

• A) uses just-in-time inventory control methods to speed production.
• B) cuts the development time for the introduction of a new product.
• C) lets smaller firms initiate new products and then quickly imitates the success.
• D) merges with the second largest firm in the industry to gain a larger market share.

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Definitions:

Equity Method

An accounting technique used to assess the earnings attributed to a company's investment in another company, reflecting its share of the investee's profits or losses.

Fair Value Method

An accounting approach where assets and liabilities are assessed and reported at their current market values, rather than their historical cost, reflecting their true economic worth.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's profits and losses.

Dividends Received

Payments shareholders receive from a company’s earnings, typically distributed in cash or additional stocks.