What Tactical Term Best Describes the Capacity Relationship Between Toyota

question 15

Multiple Choice

What tactical term best describes the capacity relationship between Toyota and Honda such that Toyota's response is to reduce production output of the Rav 4 if Honda were to first announce a large increase in the production of the CR-V that drove down prices?

• A)Tough commitment
• B)Strategic complement
• C)Soft commitment
• D)Strategic substitute
• E)Duopoly

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Definitions:

Consolidation Method

An accounting technique used when a company owns more than 50% of another company, requiring the financial statements of both companies to be combined as one.

Equity Securities

Equity securities represent ownership interest held by shareholders in an entity, such as stocks, signaling a claim on its proportionate share in the corporation's assets and profits.

Non-Current Section

A section of the balance sheet that lists long-term liabilities and assets that are not expected to be liquidated or paid off within one year.

Long-Term Investments

Investments in securities, bonds, real estate, or other assets intended to be held for a period exceeding one year for capital gains, dividends, or interest earnings.