Aardvark Corp

question 105

Multiple Choice

Aardvark Corp. has three products. Two products together make up two-thirds of revenues and constitute 50 percent of company profits. Aardvark's third product makes up one third of sales. With profitability far above the industry average, this product is responsible for one half of Aardvark's profits. Which of the following statements regarding assessment of the general environment is accurate for Aardvark?

• A) The company should monitor the general environment for changes that might effect the revenue of all products.
• B) The company should monitor the general environment for changes that might effect the profitability of the most profitable products.
• C) The company should monitor the general environment for changes that might effect the profitability of all products.
• D) The company should monitor the general environment for changes that might effect the revenue and profitability of all products.

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Definitions:

Challenges

Difficulties or obstacles that require effort, strategy, and resilience to overcome.

Stakeholder Groups

Collections of individuals or organizations that have an interest, right, or ownership in a company and can affect or be affected by the business' actions.

Organization's Mistakes

Errors or miscalculations made by a business or an entity that can lead to setbacks or challenges but also offer opportunities for learning and improvement.

Probability of Effect

The likelihood that a specific outcome or impact will occur as a result of a certain action or event.