Icarus Aviation, Athena Instrumentation, and Hercules Miniaturization Are Strategic Business

question 51

Multiple Choice

Icarus Aviation, Athena Instrumentation, and Hercules Miniaturization are strategic business units of Olympia Industries.One can expect that Icarus, Athena, and Hercules:

• A) use integrative mechanisms to share core competencies.
• B) compete with one another in Olympia's internal capital markets.
• C) are not necessarily related to one another in terms of products or markets.
• D) are network member firms while Olympia is the strategic center firm.

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Definitions:

Sales

The transactions between a company and its customers where goods or services are provided in exchange for money.

Margin of Safety

The difference between actual sales and breakeven sales, indicating how much sales can decrease before a business incurs a loss.

Variable Expenses

Expenditures that fluctuate in tandem with operational activity levels, including costs like utilities and commissions.

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, are subtracted from total revenue.