In an Industry Where the Primary Basis of Competition Is

question 50

Multiple Choice

In an industry where the primary basis of competition is quantity,firms may invest heavily in,say,manufacturing capacity,even if those investments do not generate positive economic profits directly.Sending this kind of a signal is called ________.

• A)"puppy-dog-play"
• B)"fat-cat effect"
• C)"top-dog strategy"
• D)"lean-and-hungry look"

---

Definitions:

Par Common Stock

The nominal or face value assigned to common stock shares in the charter of a corporation.

Cumulative Preferred Stock

A type of preferred stock where dividends accrue if not paid in a given year and must be paid out before any dividends can be distributed to common stockholders.

Issued

Refers to the act of distributing or making available something, such as stocks or bonds, to the public for the first time.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given year, requiring payment of missed dividends before common shareholders can receive dividends.