Which of the Following Is Not a Good Option for Trying

question 6

Multiple Choice

Which of the following is not a good option for trying to remedy high internal costs vis-à-vis rival firms?

• A) investing in productivity-enhancing,cost-saving technological improvements
• B) redesigning the product or some of its components to permit more economical manufacture or assembly
• C) implementing aggressive strategic resource mapping to permit across-the-board cost reduction
• D) outsourcing high-cost activities to vendors or contractors who can perform them more economically
• E) relocating high-cost activities (such as manufacturing) to geographic areas (such as China or Latin America or Eastern Europe) where they can be performed more cheaply

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Definitions:

Acquisition

The process of obtaining control of another company by purchasing its shares or assets.

Significant Influence

The power to participate in financial and operating policy decisions of an investment, without having full control or outright ownership.

Recognition of Goodwill

The accounting practice of formally acknowledging and reporting the value of goodwill on the financial statements.

Acquiring Not-For-Profit Entity

The process by which one not-for-profit organization takes control over another, either wholly or in significant part.