Which of the Following Ways Are Employed by Defending Companies

question 9

Multiple Choice

Which of the following ways are employed by defending companies to fend off a competitive attack?

• A) Remain steadfast to current product features,models,and warranty terms to ensure resources are not diverted toward unproductive efforts.
• B) Exclude volume discounts or better financing terms from the strategic response in order to maintain current profitability levels.
• C) Gain product line exclusivity to force competitors to use other distributors.
• D) Discourage buyers from leaving by offering expensive training and customer support services that highlight the quality of the product.
• E) All of these.

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Definitions:

Risk Premium

The extra return over the risk-free rate that investors require to compensate them for the risk of holding a risky asset.

Risk Aversion

A person's or entity's reluctance to take risks, preferring lower returns with known risks over higher returns with unknown risks.

Total Risk

The complete range of possible risks, including both systematic and unsystematic risks, that can affect the value of an investment.

Portfolio Returns

The gain or loss on an investment portfolio over a period of time, reflecting the overall performance of the investments.