A Weighted Industry Attractiveness Assessment Is Generally Analytically Superior to an Unweighted

question 46

Multiple Choice

A weighted industry attractiveness assessment is generally analytically superior to an unweighted assessment because

• A)a weighted ranking identifies which industries offer the best/worst long-term profit prospects.
• B)an unweighted ranking doesn't discriminate between strong and weak industry driving forces and industry competitive forces.
• C)it does a more accurate job of singling out which industry key success factors are the most important.
• D)an unweighted ranking doesn't help identify which industries have the easiest and hardest value chains to execute.
• E)the various measures of attractiveness are not likely to be equally important in determining overall attractiveness.

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Definitions:

Alternative Proposed Use

A potential use of resources or assets under consideration as an option different from their current application.

Cash

Money in the form of bills or coins, used as a medium of exchange; in accounting, it often refers to assets that are readily available for use.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Alternative Use

Alternative use pertains to the different ways in which an asset or resource can be utilized apart from its current or primary purpose.