Gigantic Corporation Follows a Strategy of Waiting for Rivals to Innovate

question 24

Multiple Choice

Gigantic Corporation follows a strategy of waiting for rivals to innovate, then quickly imitating any successful innovations. This behavior is known as

• A)collusion.
• B)an entrepreneurial strategy.
• C)a fast-second strategy.
• D)pricing the demand curve.

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Definitions:

Short-Term Obligations

Financial liabilities or debts that are due to be paid within a short period, typically within a year.

Financial Ratios

Quantitative measures derived from a company's financial statements used to assess its financial health, performance, and stability.

Liquidity Ratios

Financial metrics used to determine a company's ability to pay off its short-term debts with its liquid assets, critical for assessing financial health.

Asset Management Ratios

Financial metrics that assess how efficiently a company is using its assets to generate revenue, including turnover ratios for receivables, inventory, and assets.