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:

Accounting Profit

The net income for a company after all expenses have been subtracted from total revenue, according to standard accounting practices.

Explicit Costs

Direct, out-of-pocket expenses incurred in the operation of a business or the execution of a transaction.

Production

The process or method of creating goods and services through the combination of labor, materials, and technology.

Fixed Inputs

Resources in production that remain constant in quantity regardless of the level of output or activity.