What Is the Goal of Signaling a Challenger That Strong

question 25

Multiple Choice

What is the goal of signaling a challenger that strong retaliation is likely in the event of an attack?

• A) To reduce costs of value chain activities.
• B) Cause the challenger to begin the attack instead of waiting.
• C) Divert the challenger to use less threatening options.
• D) To create collaborative relationships with challengers.
• E) To insulate other firms from adverse impacts resulting from the challenge.

---

Definitions:

Current Assets

Assets owned by a company that are expected to be converted into cash, sold, or consumed within one year or the operating cycle.

Noncurrent Assets

Assets that are not expected to be converted into cash or used up within one year or the operating cycle, whichever is longer.

Stocks

Shares in the ownership of a company, representing a claim on the company’s assets and earnings.

Minority Interest

An ownership stake in a company that is less than 50 percent, indicating that the investor does not have control over business operations.