The Worst Targets for an Offensive-Minded Company to Target Are

question 112

Multiple Choice

The worst targets for an offensive-minded company to target are

• A)market leaders that are strong.
• B)runner-up firms with strengths in areas where the offensive-minded challenger is weaker.
• C)large multinational companies with vast capabilities and resources.
• D)runner-up firms that have amassed sufficient resources and capabilities to place them on the verge of becoming market leaders.
• E)other offensive-minded companies that possess a sizable war chest of cash and marketable securities.

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Definitions:

Direct Labor-hours

The sum of time spent by employees directly involved in the creation of a product, often used to allocate manufacturing costs.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, maintenance, and salaries of non-direct labor.

Predetermined Overhead Rate

A rate used to allocate indirect costs to products or services, calculated before the accounting period begins based on estimated costs and activity levels.

Direct Labor-hour

A metric that calculates the total number of hours worked by employees directly involved in manufacturing a product or providing a service.