Which Characteristics Differentiate Industries Such As, on the One Hand

question 4

Multiple Choice

Which characteristics differentiate industries such as, on the one hand, aircraft manufacturers and commercial satellites, and, on the other hand, e-service and fast food industries?

• A)The second category of industries has very few players whereas the first category of industries is very fragmented, with thousands of players
• B)The capital requirements are very high for the first category and moderate for the second category
• C)The first category is highly sophisticated and requires top notch technical skills, whereas the second category relies upon marketing competencies
• D)The intensity of competition is lower in the first category of industries than in the second category

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Definitions:

Net Margin

A profitability ratio calculated as net income divided by revenue, indicating the percentage of each dollar of revenue that results in net profit.

Inventory Turnover

A measure of how often a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Cycle Times

The total time from the beginning to the end of a process, procedure, or activity, often used as a measure of efficiency in manufacturing and project management.

Engineering Efficiency

The optimization of processes, systems, or designs to maximize output, performance, or functionality while minimizing waste, cost, and inefficiencies.