The Value of Determining the Relative Competitive Strength of Each

question 82

Multiple Choice

The value of determining the relative competitive strength of each business a company has diversified into is:

• A) to have a quantitative basis for identifying which businesses have large/small competitive advantages or competitive disadvantages vis-à-vis the rivals in their respective industries.
• B) to have a quantitative basis for rating them from strongest to weakest in terms of contributing to the corporate parent's revenue growth.
• C) to compare resource strengths and weaknesses,business by business.
• D) to have a quantitative basis for rating them from strongest to weakest in contending for market leadership in their respective industries.
• E) to have a quantitative basis for rating them from strongest to weakest in terms of contributing to the corporate parent's profitability.

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Definitions:

Legal Entities

Organizations or structures that are recognized by law as having rights and responsibilities, such as corporations, partnerships, and sole proprietorships.

Economic Entities

Organizations or units that engage in economic activities, recognized as separate from their owners.

Wholly Owned Subsidiaries

Companies whose entire share capital is 100% owned by another company, the parent company.

Revenue from Investment

Income earned from investing in financial assets or other assets, including interests, dividends, or capital gains.