The Determinants of the Choice Between a Leader Versus a Follower

question 50

Multiple Choice

The determinants of the choice between a leader versus a follower strategy are

• A)the extent of protection of the innovation, the nature of the knowledge involved, and the potential to establish a standard.
• B)the development cost of the innovation, the importance of complementary resources, and the shape of the economy.
• C)the extent of protection of the innovation, the potential to establish a standard, and the importance of complementary resources.
• D)the potential to establish a standard, the relative powers of the other players in the industry, and the development cost of the innovation.

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Definitions:

Net New Borrowing

The total amount of new debt a company has taken on minus any debt that has been repaid during a specific period.

Interest Payments

Payments made to a lender by a borrower in return for the use of borrowed money, typically calculated as a percentage of the principal.

Net New Equity

The difference between equity capital a company raises by issuing new shares and the capital it uses to buy back existing shares.

Dividend Payments

Allocations of a segment of a company's profits, determined by the board of directors, to a category of its stockholders.