As a Rule, the Key Indicators of Industry Attractiveness, for All

question 104

Multiple Choice

As a rule, the key indicators of industry attractiveness, for all the industries represented in a diversified company's business portfolio, should not be measured on such attractiveness factors as

• A)market size and projected growth rate.
• B)emerging opportunities and threats, and the intensity of competition.
• C)resource requirements and the presence of cross-industry strategic fits.
• D)seasonal and cyclical factors, industry profitability, and whether an industry has significant social, political, regulatory, and environmental problems.
• E)the utility of the products for consumers from all age groups.

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Definitions:

Average Total Cost

The total cost divided by the quantity produced, indicative of the cost per unit of output.

Average Fixed Cost

Fixed cost divided by output.

Variable Costs

Expenses that change in proportion to the activity of a business.

Fixed Costs

Expenses that do not change with the level of output or sales in the short term.