The Chief Purpose of Calculating Quantitative Industry Attractiveness Scores for Each

question 6

Multiple Choice

The chief purpose of calculating quantitative industry attractiveness scores for each industry a company has diversified into is to

• A)determine which industry is the biggest and fastest growing.
• B)get in position to rank the industries from most competitive to least competitive.
• C)provide a basis for drawing analysis-based conclusions about the attractiveness of the industries a company has diversified into, both individually and as a group, and further to provide an indication of which industries offer the best and worst long-term prospects.
• D)ascertain which industries have the easiest-to-achieve key success factors.
• E)rank the attractiveness of the various industry value chains from best to worst.

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Definitions:

Bank Reconciliation

The process of comparing and adjusting the balance shown in an entity's bank statement, with the corresponding amount shown in the entity's own accounting records.

Outstanding Checks

Checks that have been written and recorded by an entity but not yet cleared or cashed by the recipient.

Control Environment

The control environment forms part of an organization’s internal control framework, setting the tone for discipline and structure regarding the internal controls and operational processes.

Risk Assessment

The process of identifying, analyzing, and evaluating the likelihood and impact of risks on a project or organization.