Which of the Following Best Defines Competitive Inertia

question 12

Multiple Choice

Which of the following best defines competitive inertia?

• A) It is a reluctance to change strategies or competitive practices that have been successful in the past.
• B) It is a risk-seeking strategy that aims to create and acquire companies in completely unrelated businesses.
• C) It is a discrepancy between a company's intended strategy and the strategic actions managers take when implementing that strategy.
• D) It is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.

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Definitions:

Factory Overhead

Indirect costs associated with manufacturing, including costs related to operating the manufacturing facilities, aside from direct labor and direct materials costs.

Machine Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing costs.

Journal Entry

A record in accounting that shows a business transaction and its effect on the financial statements, consisting of debit and credit entries.

Predetermined Overhead Rate

A method employed to distribute manufacturing overhead costs to specific production units, utilizing projected expenses and levels of activity.