Which One of the Following Is the BEST Guideline for Deciding

question 109

Multiple Choice

Which one of the following is the BEST guideline for deciding what the priorities should be for allocating resources to the various businesses of a diversified company?

• A) Businesses with high industry attractiveness ratings should be given top priority and those with low industry attractiveness ratings should be given low priority.
• B) Business subsidiaries with the brightest profit and growth prospects,attractive positions on the nine-cell matrix,and solid strategic and resource fits generally should head the list for corporate resource support.
• C) The positions of each business in the nine-cell attractiveness-strength matrix should govern resource allocation.
• D) Businesses with the most strategic and resource fits should be given top priority and those with the fewest strategic and resource fits should be given low priority.
• E) Businesses with high competitive strength ratings should be given top priority and those with low competitive strength ratings should be given low priority.

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Definitions:

GDP

Gross Domestic Product, a measure of a country's economic performance, representing the total value of all goods and services produced over a specific time period.

GNI

Gross National Income, a measure of a country's income, including domestic production and foreign investments, used to estimate the economic health of a nation.

Tariff

A tax levied on a good imported into a country; also called a duty.

Price Gap

The difference in price between comparable products or services, often impacting consumer choice and competitive positioning.