What Hurdles Are Present in Calculating Industry Attractiveness Scores

question 87

Multiple Choice

What hurdles are present in calculating industry attractiveness scores?

• A) Deciding on the appropriate weights for the attractiveness measures
• B) Different analysts use different weights for the different attractiveness measures
• C) Gaining sufficient command of the industry to assign more accurate and objective ratings
• D) Deciding the impact of strategic fits to unrelated and related diversification
• E) Deciding whether a business is related or unrelated

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Definitions:

Controversial

Causing debate or disagreement, often due to differing opinions or values.

Oligopoly

A market structure in which a few firms dominate, often resulting in reduced competition.

Collude

When firms work together, often in secret, to fix prices, limit production, or divide markets, in order to increase profits by reducing competition.

Cartel

An alliance of producers who agree to control prices, production, and marketing of their products to maximize collective profits.