Which of the Following Statements Is Incorrect Regarding the Industry

question 55

Multiple Choice

Which of the following statements is incorrect regarding the industry analysis portion of a firm's business plan?

• A) It is important to focus simultaneously on a business's industry and its target market.
• B) Industry structure refers to how concentrated or fragmented an industry is.
• C) Most industries have 6 to 10 key success factors that should be reported in the industry analysis.
• D) Industry trends should be discussed, which include both environmental and business trends.
• E) The industry trends portion of the industry analysis is arguably the most important section.

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Definitions:

Cash Dividend

A payment made by a company out of its profits to its shareholders in cash, typically on a regular basis.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the issuing company, reducing the amount of stock on the open market.

Common Stock

Equity shares that represent a form of corporate ownership, entitling the shareholder to a share of the company's success through dividends and or capital appreciation.

Stock Split

A corporate action that increases the number of shares in a company, reducing the price per share without changing the market capitalization.