Which of the Following Factors Most Encourages Stability in a Firm's

question 37

Multiple Choice

Which of the following factors most encourages stability in a firm's strategy?

• A) A new CEO hired from outside the firm but within the industry
• B) Internal CEO succession and a homogeneous top management team
• C) External CEO succession and a heterogeneous top management team
• D) A new CEO hired from outside the industry

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Definitions:

Competitive Advantage

A unique attribute or ability that enables a business to outperform its competitors.

Knowledge Gathering

The collection of information from various sources comprehensively, aiming to increase understanding or make informed decisions.

Franchise System

A method of doing business whereby a franchisor licenses trademarks and proven methods of doing business to a franchisee in exchange for a recurring payment, and often a percentage of the franchisee's revenue.

Franchise Relationship Model (FRM)

A business model where a franchisor licenses its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee.