Which one of the following is characteristic of a firm that has chosen a captive company strategy?
A) It is most appropriate for a company with a strong competitive position in a growing industry.
B) The firm increases the scope of its functional activities.
C) The firm gains a certainty of sales and production in return for becoming heavily dependent upon another firm for at least 75% of its sales.
D) The captive company acts as an angel to another firm.
E) It is the first phase for the company to execute a turnaround strategy.

Question

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The Answer of Which one of the following is characteristic of a firm that has chosen a captive company strategy?
A) It is most appropriate for a company with a strong competitive position in a growing industry.
B) The firm increases the scope of its functional activities.
C) The firm gains a certainty of sales and production in return for becoming heavily dependent upon another firm for at least 75% of its sales.
D) The captive company acts as an angel to another firm.
E) It is the first phase for the company to execute a turnaround strategy.

Which One of the Following Is Characteristic of a Firm