An Industry's Current Profitability

question 26

Multiple Choice

An industry's current profitability:

• A)On its own tends to be a poor predictor of future profitability
• B)Is an excellent predictor of its future profitability since changes in industries' profitability occur slowly
• C)Is the result of many different factors interacting in unpredictable ways
• D)Is largely set by the profitability of the biggest company within that industry

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Definitions:

Origin

The point at which something begins or arises, often used in various contexts such as the origins of a concept, product, or phenomenon.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, or insurance premiums.

Workplace Rage

The demonstration of aggressive behaviour toward co-workers or the work setting.

Physical Exhaustion

A state of extreme physical tiredness or fatigue, often resulting from excessive work or exercise.