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Identify and Discuss the Basic Components of an Attractive Business

question 35

Essay

Identify and discuss the basic components of an attractive business climate. Comment on the extent to which a fast food restaurant franchise might make a different assessment of relevant factors than would a capital-intensive business such as an oil refinery and pipeline company.


Definitions:

Probability Distribution

A function in statistics that enumerates all conceivable values and their associated probabilities for a random variable within a predetermined range.

Variance

A measure of the dispersion or spread of a set of values, indicating how much the numbers in the set differ from the mean.

Diversifiable Risk

A risk that can be reduced or eliminated from a portfolio through diversification, not linked to the market's movements as a whole.

Company-Specific

Company-Specific refers to factors or risks that affect an individual company's performance, distinct from broader market or industry factors.

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