When Firms Follow Each Other's Lead to Reduce the Level

question 63

Multiple Choice

When firms follow each other's lead to reduce the level of competition such as GE and Westinghouse did in steam turbines,it is referred to as

• A) explicit collusion.
• B) a strategic alliance.
• C) a mutual service consortium.
• D) conscious parallelism.
• E) partnering.

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Definitions:

Subsidiary Companies

These are companies that are controlled by another company, known as the parent company, through ownership of more than half of their voting stock.

Stock Investments Account

An account that records the cost of stocks that have been purchased as investments by a company.

Dividends Received

Income received from shares in a company, typically distributed from profits to shareholders as decided by the board of directors.

Short-Term Investment

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle.