Which One of the Following Is Not a Good Example

question 58

Multiple Choice

Which one of the following is not a good example of a defensive strategy to protect a company's market share and competitive position?

• A)Adding new features or models and otherwise broadening the product line to close off vacant niches and gaps to opportunity-seeking challengers
• B)Thwarting the efforts of rivals to attack with lower prices by maintaining economy-priced options of its own
• C)Engaging in a preemptive strike strategy in an effort to discourage rivals from being aggressive
• D)Signaling challengers that retaliation is likely in the event that they launch an attack
• E)Making early announcements about impending new products or price changes to induce potential buyers to postpone switching

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Definitions:

Initial Value Method

An accounting method where investments are recorded at their cost at the time of acquisition without subsequent adjustment for changes in market value.

Consolidation Worksheet

A tool used in accounting to combine the financial statements of a parent company with its subsidiaries to prepare a consolidated statement.

Equity Method

An accounting technique used to record investments in other companies by recognizing the investor's share of the investee's profits or losses.

Common Stock

Type of equity security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends or stock appreciation.