The Stability Strategy Is Appropriate for All of the Following

question 46

Multiple Choice

The stability strategy is appropriate for all of the following circumstances EXCEPT

• A) useful in the short-run but can be dangerous if followed too long.
• B) most appropriate for reasonably successful corporations in a reasonably predictable environment.
• C) when a firm is continuing its current activities without a significant change in direction.
• D) appropriate when the industry is in decline.
• E) popular with small business owners who have found a niche and are happy with their success.

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Definitions:

Central Limit Theorem

A fundamental theorem in statistics stating that the distribution of sample means approaches a normal distribution as the sample size increases, regardless of the population's distribution.

Normal Distribution

A bell-shaped frequency distribution curve, where most of the occurrences take place around the central peak and probabilities for values taper off equally on both sides.

Bushels

A unit of volume that is used in the United States for measuring agricultural produce such as grains.

Normal Model

A statistical model that describes data distribution patterns that follow a bell curve or Gaussian distribution.