During an Interview for a CEO Position, Elena's Potential Employers

question 5

Multiple Choice

During an interview for a CEO position, Elena's potential employers ask her, "If you get this job, will you focus more on industry effects or firm effects?" What should her answer be?

• A) "Neither. I would focus on unexplained variances. They are the most mysterious effects and the most powerful."
• B) "Firm effects. I will be able to have the most impact on those."
• C) "Industry effects. They have the most substantial effect on superior firm performance."
• D) "Neither. I would focus on business cycle effects. These are the most predictable, so they are worth the most effort."