Which of the Following Is True About a Lagging Strategy

question 40

Multiple Choice

Which of the following is true about a lagging strategy?

• A)The most aggressive strategy for capacity expansion is a lagging strategy.
• B)When a company pursues a lagging strategy,it increases its capacity only when there is a sizeable increase in demand.
• C)With a lagging strategy the firm is most likely to have idle capacity or excess inventories.
• D)The firm is able to adapt quickly to changes in demand.

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Definitions:

Hedge Funds

Investment funds that employ diverse strategies to earn active returns for their investors, often engaging in more complex trading, portfolio-construction, and risk management techniques than conventional mutual funds.

Aggressive Financial Strategies

Financial tactics that involve higher risk to achieve potential higher returns, often characterized by significant borrowing and rapid growth objectives.

Sophisticated Investors

Individuals or entities with extensive market experience and knowledge, making them capable of making informed investment decisions.

Corporate Finance

The division of finance that deals with funding sources, capital structure, and investment decisions of corporations.