Which of the Following Is True of Competitor Intelligence as a Means

question 77

Multiple Choice

Which of the following is true of competitor intelligence as a means of environmental scanning?

• A) The Economic Espionage Act makes it a crime in the United States to engage in competitor intelligence.
• B) It is unethical to use competitor intelligence to make strategic business decisions.
• C) Competitor intelligence is ethical if competitor-related information is collected from sources accessible and available to the public.
• D) Buying competitors' products and asking their own employees to evaluate them to learn about new technical innovations is an example of the unethical practices followed in competitor intelligence.

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Definitions:

Highly Inflationary Economy

An economic situation characterized by an extremely high and typically accelerating inflation rate, leading to a rapid erosion of currency value.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.

U.S. Dollar Income Statement

A financial statement presenting a company's revenues, expenses, and profits denominated in U.S. dollars.

Functional Currency

The primary currency of the primary economic environment in which an entity operates, used in measuring its financial performance and position.