Narrative 5-1 the Rolling Stones Are the Most Successful Act in the in the Music

question 94

Multiple Choice

Narrative 5-1
The Rolling Stones are the most successful act in the music industry largely because they run the band as a business-Rolling Stones Inc. Since 1989,the band has generated more than $1.5 billion in gross revenues. That total includes sales of records,song rights,merchandising,sponsorship money,and touring. Unlike some other groups,the Stones carry no antibusiness baggage. The company licenses over 50 products from underwear to formalwear. Its record earnings from one tour came from the Voodoo Lounge tour in 1994,which grossed $121.2 million. Over the past decade,the group's song writing has made about $56 million. The next time you see Mick Jagger,think of him as the highly successful CEO of a mid-sized corporation. The goal of the corporation is to continue providing products that differ from its competitors' offerings so that fans will continue to pay a premium price for what it sells.
-Refer to Narrative 5-1. Which of the following can the Rolling Stones be said to have,since other music groups cannot duplicate the value the band is providing to customers?

• A)contingency management style  
• B)sustainable competitive advantage  
• C)resource diversity  
• D)resource munificence

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Definitions:

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services at all levels within a society.

Open Market Operations

Decisions to buy or sell U.S. Treasury bills (short-term debt issued by the U.S. government) and other investments in the open market.