Which One of the Following Is NOT a Characteristic of a Firm

question 56

Multiple Choice

Which one of the following is NOT a characteristic of a firm that has chosen a captive company strategy?

• A) It is most appropriate for a company with a strong competitive position in a growing industry.
• B) The firm reduces its functional activities to reduce costs.
• C) The firm gains a certainty of sales and production in return for becoming heavily dependent upon another firm for at least 75% of its sales.
• D) One of its customers makes up a large percentage of the company's sales and wants the company to keep operating as its supplier.
• E) Management desperately seeks an "angel" to guarantee the company's continued existence.

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Definitions:

Delay Gratification

The process of resisting an immediate reward in preference for a later, often greater, reward.

Grit

A personality trait characterized by persistence and resilience in the face of failure or obstacles.

Variety of Flavors

The range or assortment of distinct tastes available in food or drink, contributed by ingredients and preparation methods.

Cultural Influences

The impact of culture on an individual's beliefs, behaviors, and understanding of the world.