Which One of the Following Is Characteristic of a Firm

Multiple Choice

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.