Which of the Following Is Most Likely to Qualify as a Driving

question 85

Multiple Choice

Which of the following is most likely to qualify as a driving force?

• A) Increases in price-cutting by rival sellers and the launch of major new advertising campaigns by one or more rivals
• B) Wildly successful introduction of innovative new products by one or more industry rivals that force other rivals to respond quickly or lose a major share of their customers to the innovating rival(s)
• C) An increase in the prices of substitute products
• D) Decisions on the part the industry's three biggest competitors not to pursue a strategy of striving to be the industry's low-cost leader
• E) Decisions by one or more outsiders not to attempt to enter the industry

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Definitions:

Parent

A company that holds a controlling interest in one or more subsidiaries, often by owning more than half of their stock.

NCI

Non-Controlling Interest, which refers to the equity in a subsidiary not attributable, directly or indirectly, to a parent company.

Indirect Ownership Interests

Ownership in a company that is mediated through another entity, such as owning a parent company that in turn owns subsidiaries.