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:

Employee Salaries and Wages

Payments made to employees for their labor, including both fixed salaries and variable wages.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate forecasting and planning.

Planning Budget

A budget created at the beginning of the budgeting period that is valid only for the planned level of activity.

Budgeted Overhead Cost

The anticipated indirect costs of production planned for a specific period, often part of a company's operating budget.