Which One of the Following Is Not a Characteristic of a Firm

question 26

Multiple Choice

Which one of the following is not a 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 reduces its functional activities to reduce costs.
• 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) One of its customers makes up a large percentage of the company's sales and wants the company to keep operating as its supplier.
• E) Management desperately seeks an "angel" to guarantee the company's continued existence.

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Definitions:

Establishment Clause

A provision in the First Amendment of the U.S. Constitution that prohibits the government from establishing an official religion, ensuring the separation of church and state.

Free Exercise Clause

A provision in the First Amendment to the U.S. Constitution that protects the right of individuals to practice their religion freely, without government interference.

Equal Protection Clause

Part of the Fourteenth Amendment to the United States Constitution, it dictates that no state shall deny to any person within its jurisdiction the equal protection of the laws.

Muslim Man

An individual who identifies with the Islamic faith, which is a monotheistic Abrahamic religion articulated by the Quran.