All of the Following Are Assumptions of the Industrial Organization

question 48

Multiple Choice

All of the following are assumptions of the industrial organization (I/O) model EXCEPT

• A)organizational decision makers are rational and committed to acting in the firm's best interests.
• B)resources to implement strategies are firm-specific and attached to firms over the long-term.
• C)the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns.
• D)firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded by a company, representing obligations that exist at the balance sheet date.

Accounts Payable

Liabilities of a business that represent its obligations to pay for goods or services it has received but not yet paid for.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.

Statement of Cash Flows

A financial report detailing the cash inflows and outflows from operating, investing, and financing activities of a company over a period.