A Dominant Strategy

question 39

Multiple Choice

A dominant strategy

• A)is one that is the best for a firm, no matter what strategies other firms use.
• B)is one that a firm is forced into following by government policy.
• C)involves colluding with rivals to maximize joint profits.
• D)involves deciding what to do after all rivals have chosen their own strategies.

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Definitions:

Defensive Measure

Strategies or actions taken by a company to protect itself against hostile takeover attempts or competitive threats.

Target Company

A company that is the subject of a takeover by another firm, typically because it is considered to be attractive for investment or acquisition.

Potential Acquirer

An entity or individual considering the purchase or takeover of another company.

Spinoff

A type of corporate restructuring in which a company divides itself into two or more independently operated businesses, one being separated from the parent organization.