Changes in Stock Prices

question 97

Multiple Choice

Changes in stock prices

• A)do not affect people's wealth and their willingness to spend.
• B)affect firms' decisions to sell stock to finance investment spending.
• C)occur in regular patterns.
• D)are unimportant to decision makers.

Demonstrate knowledge of Porter’s competitive forces model and its importance in strategic planning.

Understand the role and impact of technology in enhancing customer experiences and operational efficiency in industries.

Recognize strategies businesses can employ to gain competitive advantage, including cost leadership, differentiation, and innovation.

Explain the concept of switching costs and their effect on buyer behavior and competitive strategy.

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Definitions:

Defence Mechanism

Unconscious mental tactics employed to shield oneself from the distress caused by thoughts or feelings that are deemed unacceptable.

Rationalization

A defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Projection

A defense mechanism where an individual attributes their own unacceptable thoughts, feelings, or motives to someone else.

Sigmund Freud

An Austrian neurologist best known for developing the theories and techniques of psychoanalysis, including the concepts of the unconscious mind, Oedipus complex, and defense mechanisms.