Which of the Following Is Not a Factor That Affects

question 53

Multiple Choice

Which of the following is not a factor that affects how a competitor will respond to a competitive attack?

• A) how dependent the competitor is on that industry or particular market segment
• B) the degree of market power and reputation of the company that initiated the attack
• C) the stock market reaction to the initial competitive attack
• D) the resources which are available for a firm to respond

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Definitions:

Tax Advantages

Financial benefits that reduce the amount of tax owed by allowing certain deductions, credits, or exemptions.

Antitrust Laws

These laws, including the Sherman and Clayton acts, attempted to enforce competition and to control the corporate merger movement.

Merger

Two or more firms combining to form a single firm.

Conventional Merger

The combination of two or more companies into a single entity through the acquisition or pooling of interests.