A Low-Cost Airline Described as One of the Excellent Companies

question 107

Multiple Choice

A low-cost airline described as one of the excellent companies in the bestseller of the early 1980s,InSearch of Excellence is no longer in business.Industry analysts state that although the service and price provided by the airline was what customers wanted,the larger airlines were able to drive the low-cost airline out of business through an aggressive price war.This scenario is illustrative of which aspect of the competitive environment?

• A)Customers
• B)Competitors
• C)Regulators
• D)The economy
• E)The political environment of the time

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Definitions:

Common Stock

represents units of ownership in a public corporation, entitling shareholders to vote on corporate matters and receive dividends.

Outstanding Shares

The total shares of stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by company insiders.

Rights Offering

A corporate action in which a company offers existing shareholders the opportunity to buy additional shares directly from the company at a discounted price before the public.

Market Price

The current quoted price for the exchange of an asset or service.