Which One of the Following Is Characteristic of a Firm

question 80

Multiple Choice

Which one of the following is characteristic of a firm that has chosen a captive company strategy?

• A) It is most appropriate for a company with a strong competitive position in a growing industry.
• B) The firm increases the scope of its functional activities.
• C) The firm gains a certainty of sales and production in return for becoming heavily dependent upon another firm for at least 75% of its sales.
• D) The captive company acts as an angel to another firm.
• E) It is the first phase for the company to execute a turnaround strategy.

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Definitions:

U.S. Patent And Trademark Office

The federal agency responsible for granting patents and registering trademarks, thereby protecting intellectual property in the United States.

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product.

Nonfunctional

Refers to elements or features of a system, product, or service that do not operate as intended or do not serve their intended purpose.

Product

An item or substance that is manufactured or refined for sale.