Which of the Following Represents a Competitive Intelligence Practice That

question 82

Multiple Choice

Which of the following represents a competitive intelligence practice that is both legal and ethical?

• A) A firm hires a competitor's employees and asks them to share the names and addresses of business contacts from their previous company.
• B) An executive attends a trade show solely to obtain a competitor's brochures, listen to sales pitches, and ask questions about the competitor's products.
• C) A city council member shares information about the decision process for selecting a contractor to build a new city council building with his wife, an executive with a construction firm bidding on the contract.
• D) A marketing manager sells confidential plans for a company's expansion into the Far East to a firm that is not a direct competitor.

---

Definitions:

Scale of Operations

The scope, size, or capacity at which a company or organization performs its activities, impacting costs, efficiency, and potential for growth.

Economies of Scale

Reductions in per-unit cost that organizations achieve through expanded production scales, where larger output volumes usually mean decreased costs per unit.

Long-run Average Total Cost

The average cost per unit of output when all inputs, including capital, can be varied, and economies of scale are accounted for.

Long-run Total Cost

The overall expenses incurred by a firm when all inputs are variable, reflecting costs over a time when firms can adjust all factors of production.