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:

Res Ipsa Loquitur

A doctrine in tort law that allows the presumption of negligence by the defendant where the accident could not have happened without negligence and the instrument of injury was under the defendant's control.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in like circumstances, leading to unintended harm.

Proximate Cause

A legal concept that identifies the primary cause of damage or injury in a negligence lawsuit, determining the extent of a defendant's liability.

Gas Cans

Portable containers designed specifically for the storage and transport of gasoline or other flammable liquids.