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NEW QUESTION: 1
A malicious person gained access to a datacenter by ripping the proximity badge reader off
the wall near the datacenter entrance. This caused the electronic locks on the datacenter door to release because the:
A. system used magnetic locks and the locks became demagnetized.
B. system was designed to fail open for life-safety.
C. system was installed in a fail closed configuration.
D. badge reader was improperly installed.
NEW QUESTION: 2
A firm most likely will adopt a preemptive capacity expansion strategy when:
A. Cash reserves are low.
B. Excess industry capacity exists.
C. Large competitors have signaled their intention to expand.
D. Demand uncertainty is low.
The extent of uncertainty about future demand is a crucial variable in determining the nature of industry expansion. For example, if uncertainty is great, firms willing to take greater risks because of their large cash resources or strategic stake in the industry will act first. Other firms will await events. When demand uncertainty is low, firms will tend to adopt a strategy of preemption, usually with strong market signals, to forestall competitors' expansion plans. Excess preemption leads to excess industry capacity because firms overestimate their competitive strengths, misunderstand market signals, or fail to accurately assess competitors' intentions.