Which of the following best characterizes a 'predatory behavior' in business?

Prepare for the North Carolina Certified Paralegal Exam with flashcards and multiple-choice questions featuring hints and explanations. Ensure success on your NCCP Exam!

Predatory behavior in business is characterized by actions aimed at harming competitors or manipulating markets to create an unfair advantage, often through unethical means. This type of behavior typically involves strategies to eliminate competition, such as undercutting prices to drive rivals out of the market or engaging in deceptive practices that mislead consumers and authorities about the business’s true intentions or practices.

The concept emphasizes the impact on competition and market integrity. By focusing on unethical strategies to dominate or eliminate threats in the marketplace, this behavior not only harms competitors but can also result in negative consequences for consumers, such as reduced choices or higher prices in the long run once competition has been diminished.

In contrast, the other options describe practices that are generally seen as legitimate or ethical in business. Legal tactics for competitive pricing, innovative marketing campaigns, and strategic investment in new technologies all represent proactive and ethical approaches to conducting business, aimed at improving a company's competitive position without resorting to harmful or unethical measures against rivals.

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