Determining Firm Performance Is a Complex Interaction of Firm Effects

question 30

Multiple Choice

Determining firm performance is a complex interaction of firm effects and industry effects,with other factors also considered.Based on historical analysis,what do we know about firm and industry effects?

• A) Managerial actions rather than firm effects have a large role in firm performance.
• B) Macro environmental effects such as a recession have more impact than either firm or industry effects.
• C) Firm effects have more impact on performance than industry effects.
• D) Industry effects have more impact on performance than firm effects.

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Definitions:

Complex

In psychology, a complex is a core pattern of emotions, memories, perceptions, and wishes in the personal unconscious organized around a common theme, such as power or status.

Persona

The aspect of an individual's character that is presented to or perceived by others; a social facade.

Extraverted Thinking

A cognitive style characterized by decision-making based on external criteria and logically derived solutions.

Logical

Characterized by clear, sound reasoning or a coherent form of thought based on premises which leads invariably to a conclusion.