Which of the Following Statements Is True of Declining Industries

question 54

Multiple Choice

Which of the following statements is true of declining industries?

• A) Typically, not all segments of an industry decline at the same rate.
• B) A declining industry should ideally use the leadership strategy when it does not have any strengths and the competition is low.
• C) Divestment strategy is when a company in a declining industry tries to improve sales by improving product quality.
• D) The greater the exit barriers of a declining industry, the lower the intensity of competition.
• E) The intensity of competition lower in declining industries that sell commodity-like products.

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Definitions:

Parol Evidence

A rule that prevents parties to a written contract from presenting extrinsic evidence of terms of the agreement that contradict, modify, or vary the contractual terms written in the document.

Assignor

In a contract, the party who transfers his or her rights to the contract to a third party (an assignee), giving the assignee the right to collect what was contractually agreed on in the original contract.

Assignee

In a contract, the party who receives the rights of another party (an assignor) to collect what was contractually agreed on in the original contract.

Prenuptial Agreement

An agreement two parties enter into before marriage that clearly states the ownership rights each party enjoys in the other party’s property. To be enforceable, the agreement must be in writing.