An Industry's Current Profitability

question 37

Multiple Choice

An industry's current profitability

• A)on its own tends to be a poor predictor of future profitability.
• B)is an excellent predictor of its future profitability
• C)explains the past in that industry.
• D)is determined by the forces of competition and so many other factors that gaining insights into its causes is almost impossible.

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Definitions:

Systems Design

The process of defining the architecture, components, modules, interfaces, and data for a system to satisfy specified requirements.

Cash Equivalents

Short-term, highly liquid investments that are easily convertible into known amounts of cash with original maturities of three months or less.

Highly Liquid

Describes assets that can be quickly and easily converted into cash with minimal impact on their value.

Vouchers

Documents that serve as evidence of a transaction and propose a future payment, detailing the conditions and amounts to be paid.