The Decision of Whether or Not to Compete Should Be

question 82

True/False

The decision of whether or not to compete should be based on a firm's resources, objectives, and expected profit potential.

---

Definitions:

Issues Of Scale

Challenges or advantages businesses face as they expand or reduce their size or production capacity.

Multiple Rates Of Return

A situation where an investment has more than one internal rate of return due to differing cash flow patterns over time.

Required Rate Of Return

The minimum annual percentage earnings needed from an investment to make it worthwhile, factoring in risk.

IRR

An investment's IRR represents the discount rate that makes the sum of all future cash flows (positive and negative) from the investment equal to zero, effectively measuring its annual growth rate.