Which of the Following Statements About the Competitive Environment Is

question 243

Multiple Choice

Which of the following statements about the competitive environment is most accurate?

• A) Firms that produce a quality product will almost always succeed in the competitive marketplace.
• B) Traditional firms will be unable to successfully compete against the new Internet firms unless they immediately create a way to reach customers through this technology.
• C) Firms that empower their employees will continue to perform poorly in the competitive environment.
• D) Companies now have to offer both high-quality products and outstanding service at competitive prices.

---

Definitions:

Stated Interest Rate

The interest rate declared on a bond or loan agreement, not necessarily reflecting the market interest rate or effective interest rate.

Present Value

The current worth of a future sum of money or stream of cash flows, discounted at a specific rate.

Actuarial Information

Data and calculations used by actuaries to assess risks and determine premiums or forecasts for insurance and other industries.

Bond Issuance

The process by which a borrower issues bonds to lenders or investors in order to raise capital, involving agreements to repay the borrowed amount plus interest.