Bryan Is a Manager at a Software Firm

question 60

Multiple Choice

Bryan is a manager at a software firm. The CEO tells him that the industry as a whole has become increasingly profitable over the past five years. Based on this information, Bryan is most likely to expect

• A) increased competition in the future and therefore he should recommend that the company upgrade its products to slow the entry of rival companies.
• B) increased profitability in the future and therefore he should recommend that the company remain on its current course.
• C) a leveling off of profitability in the next few years and therefore he should recommend that the company cooperate with its rivals to stimulate the industry.
• D) decreased competition in the next few years and therefore he should recommend that the company take advantage of its pricing power.

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Definitions:

Lump Sum Payment

A lump sum payment is a large payment made in one single payment instead of broken down into installments.

Leisure

Time spent away from work and essential domestic activities, often used for relaxation, recreation, or other personal interests.

Leisure

Time available for ease, relaxation, and activities one chooses to engage in beyond compulsory activities like work or chores.

Consumption

The use of goods and services by households or individuals, constituting one of the primary components of economic activity.