In Selecting an Appropriate Business Strategy, All of the Following

question 121

Multiple Choice

In selecting an appropriate business strategy, all of the following are relevant questions except for

• A) Does the firm have sufficient resources to implement the strategy?
• B) Have all reasonable alternatives available for implementing the strategy been evaluated?
• C) What are the key assumptions underlying the various strategic options under consideration?
• D) What do the firm's targeted customers primarily consider in making purchasing decisions?
• E) Why might an acquisition be preferred to a joint venture in implementing the business strategy?

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Definitions:

Income Elasticity

A measure of how the demand for a good or service changes relative to a change in consumers' income.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases.

Inferior

A term used in economics to describe goods whose demand decreases as the income of the consumer increases, contrasted with normal goods.

Input Costs

Input costs are the prices of the raw materials, labor, and other resources required to produce a good or service.