One of the Most Significant Contributions to Strategy Making in Diversified

question 98

Multiple Choice

One of the most significant contributions to strategy making in diversified companies that the nine-cell industry attractiveness competitive strength matrix provides is

• A)identifying which businesses have strategies that should be continued, which businesses have strategies that need fine-tuning, and which businesses have strategies that need a major overhaul.
• B)that businesses having the greatest competitive strength and that are positioned in the most attractive industries should have the highest priority for corporate resource allocation and that competitively weak businesses in relatively unattractive industries should have the lowest priority and perhaps even be considered for divestiture.
• C)pinpointing which strategies are most appropriate for businesses positioned in the four corners of the matrix (although the matrix reveals little about the best strategies for businesses positioned in the remainder of the matrix).
• D)its ability to pinpoint what kind of competitive advantage or disadvantage each business has.
• E)pinpointing which businesses to keep and which ones to divest.

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Installment Method

A method used in taxation allowing the recognition of income over a period of years when payment from a sale of property is received in installments.

Section 179 Deduction

A tax deduction that allows businesses to deduct the full purchase price of qualifying assets financed during the tax year.

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The total monetary amount agreed upon by the parties involved in a contract for the exchange of goods, services, or property.