A Company Which Has Invested So Heavily in a Particular

question 23

Multiple Choice

A company which has invested so heavily in a particular strategy that it will not consider a change in this strategy even if it is not successful,would be an example of which strategy to avoid?

• A) follow the leader
• B) hit another home run
• C) arms race
• D) do everything
• E) losing hand

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Definitions:

Incorporation

The process of legally declaring a corporate entity as separate from its owners, providing it with its own rights, privileges, and liabilities distinct from those of its members.

Lease Agreement

A contract outlining the terms under which one party agrees to rent property owned by another party.

Novation

The substitution, by mutual agreement, of another party for one of the original parties to a contract.

Liability

The state of being legally responsible for something, particularly in terms of debts or legal obligations.