How can a firm obscure its performance?
A)By masking its results so that rivals fail to see its success
B)By avoiding disclosing financial performance
C)By temporarily lowering prices, so that the firm forgoes short term profits but succeeds in dissuading potential entrants
D)Any of the above

Question

Quizplus · Accepted Answer

All of the options listed can be used by a firm to obscure its performance. By masking its results or avoiding disclosing financial performance, competitors may not be aware of the firm's success or lack thereof. Lowering prices temporarily can also discourage potential entrants by making the market seem unprofitable.

How Can a Firm Obscure Its Performance