A Microchip Company Wants a Computer Company to Produce More

question 84

Multiple Choice

A microchip company wants a computer company to produce more powerful tablets and therefore use more of its chips. That same computer company wants the microchip maker to create chips with faster processing power. What approach could these companies take so that both can serve stockholders well?

• A) Both companies should reduce prices to force out competitors and make entering the market less appealing to potential rivals
• B) Whichever company is larger should acquire the smaller one and impose its management system on the acquired company.
• C) The two companies should enter a strategic alliance to bring about a win-win situation for them and to limit their rivals' power.
• D) For data security reasons, both companies should remain separate and refrain from sharing information.

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Definitions:

Printer Units

Devices that produce hard copy outputs from digital data.

Cartons

Packaging containers often made from cardboard or light plastic, designed to hold goods during transport and storage.

Gallons

A unit of measurement for volume primarily used in the United States, equal to 3.785 liters.

Gas

A state of matter consisting of particles that are not bound together, allowing it to expand to fill the shape of its container, commonly used as a fuel or energy source.