If a Firm Is Better Off with a Particular Strategy

question 39

Multiple Choice

If a firm is better off with a particular strategy regardless of what the other firm does,then it is called the firm's:

• A)dominated strategy.
• B)dominant strategy.
• C)weakly dominated strategy.
• D)winning strategy.

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Definitions:

Operating Cash Flow

An indicator of the money produced through the regular business activities of a company.

Noncash Deductions

Expenses that reduce taxable income but do not involve an actual cash outlay, such as depreciation.

Net Working Capital

The disparity between a firm's existing assets and its immediate debts.

NPV Computation

The process of calculating the Net Present Value of an investment, which assesses the profitability by comparing the present value of cash inflows to the initial investment.