The Executive of a Certain Company States That the Firm

question 43

Multiple Choice

The executive of a certain company states that the firm should adopt the benchmark practices only of other firms in the same industry,as business conditions in other industries are significantly different.Which of the following is the underlying assumption in his argument?

• A) The argument assumes that business practices are nontransferable across industries.
• B) The argument assumes that firms cannot find unique and significantly better ways of doing things by looking outside their competitor set.
• C) The argument suggests that noncompetitors face different business conditions that make appropriate comparisons difficult.
• D) The argument is based on the assumption that benchmarking is an ineffective tool for investigating best practices of other firms.

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Definitions:

Scientific Process

A methodical approach to inquiry that involves observing phenomena, formulating hypotheses, conducting experiments, and drawing conclusions based on evidence.

Observation

A method of data collection involving closely monitoring and recording behaviors, actions, or events as they occur naturally, without interference.

Theory Development

The process of constructing a coherent set of propositions or hypotheses to explain phenomena, often tested through scientific research.

Hypothesis Testing

A statistical method that is used in making statistical decisions using experimental data.