Which of the Following Statements Is True About Strategic Groups

question 35

Multiple Choice

Which of the following statements is true about strategic groups?

• A)They identify allies in business groups.
• B)The firms within each group are unlikely to target the same customer segment.
• C)The firms within each group compete in similar ways.
• D)They exclude rivals who share a similar business model.

---

Definitions:

Joint Cost

Costs incurred in the process of producing multiple products simultaneously, where the costs cannot be easily separated for each product.

Profitability

The ability of a business to generate earnings over its costs and expenses, indicating its financial health and efficiency.

Cost Effectiveness

The measure of how economically resources are converted into results, often used to assess the efficiency of different investments.

Operating Assets

Assets employed in the day-to-day operations of a business that are expected to generate income.