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

question 244

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.

---

Definitions:

Corporate Tax Rates

The percentage of corporate profits taken as tax by the government.

After-Tax Cost

The net cost of an investment or transaction after considering the effects of taxes on its overall expenses or returns.

WACC

Weighted Average Cost of Capital, a calculation of a firm’s cost of capital in which each category of capital is proportionately weighted.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity, indicating the proportion of debt used in financing its assets.