Which of the Following Is NOT a Major Question to Ask

question 38

Multiple Choice

Which of the following is NOT a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

• A) How many companies in the industry have good track records for revenue growth and profitability?
• B) What strategic moves are rivals likely to make next?
• C) What are the industry's key factors for future competitive success?
• D) Is the outlook for the industry conducive to providing attractive profitability?
• E) What are the driving forces in the industry, and what impact will these changes have on competitive intensity and industry profitability?

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Definitions:

Entity Method

An approach in accounting where the financial performance and position of a business entity are considered separately from its owners.

Unrealized Profits

Profits that have been generated on paper from an investment but have not yet been realized through the sale of that investment.

Upstream Sales

Transactions where a subsidiary sells goods or services to the parent company or another subsidiary within the same corporate group, often scrutinized for transfer pricing.

Subsidiary's Separate-entity Earnings

The net income or loss generated by a subsidiary, considered independently before any adjustments for intercompany transactions or consolidation.