Strategic Groups Consist of a Group of

question 79

Multiple Choice

Strategic groups consist of a group of

• A) top executives that makes strategies for a company.
• B) executives drawn from different companies within an industry that makes decisions on industry standards.
• C) firms within an industry that decides to collude rather than compete with each other so that they can increase their profits.
• D) firms within an industry that follows similar strategies.

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Definitions:

Profit Center

A business unit or department within an organization that is responsible for generating its own revenue and profit.

Direct Expenses

Costs that can be directly traced to a product, service, or activity without any need for allocation.

Profit Center

A profit center is a division or branch within a company that is responsible for generating its own revenue and profit, allowing for performance measurement independently.

Uncontrollable Costs

Uncontrollable costs are expenses that cannot be directly managed or influenced by actions of the business or its managers, often due to external factors.