Which of the Following Statements Defines a Dominant Business

question 29

Multiple Choice

Which of the following statements defines a dominant business?

• A)A firm earning more than 95 percent of the revenues from a single line of business
• B)A firm that earns more than 70 percent of its revenue from its main line of business and the rest from businesses located along the value chain
• C)A firm that earns more than 70 percent of its revenue from its main line of business and the remainder from other lines across different value chains
• D)A firm that operates in related markets, but fewer linkages exist between the new and existing markets than the elements create separately

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Definitions:

Lose

To be deprived of something one once had or to fail to win in a competition or conflict.

Breakeven

The point at which total cost and total revenue are equal, meaning no net loss or gain is incurred by the business.

Cost to Play

The initial investment or expense required to enter a market, participate in a game, or start a new venture.

Gain

An increase in a resource or asset, often measured in financial terms, resulting from investment or business operations.