The Single Most Important Factor That Determines the Profitability of a Declining

question 11

Multiple Choice

The single most important factor that determines the profitability of a declining industry is:

• A)The adjustment of capacity to shrinking demand.
• B)The capacity of firms in the industry to devise innovative strategies.
• C)The speed with which customers switch out of products supplied by the industry.
• D)The ability of firms to reduce costs through off-shoring.

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Definitions:

Writing

A method of recording language through the inscription or recording of signs and symbols.

Lease

A transfer of the right to possession and use of goods for a term in return for consideration.

Possession and Use

The right to hold property and utilize it, which can be exclusive to the owner or shared with others.

Goods

Tangible items that are manufactured or produced for sale.