Strategic Groups Consist of a Group of

question 163

Multiple Choice

Strategic groups consist of a group of

• A)top executives that makes strategies for a company.
• B)firms within an industry that follows similar strategies.
• C)executives drawn from different companies within an industry that makes decisions on industry standards.
• D)firms within an industry that decides to collude rather than compete with each other so that they can increase their profits.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain scale.

Net Working Capital

A liquidity calculation that represents the difference between a business's current assets less its current liabilities, highlighting operational efficiency and short-term financial health.

Equivalent Annual Cost

A financial metric that calculates the annual cost of owning, operating, and maintaining an asset over its entire life, allowing for the comparison of different assets' costs.

Required Return

This is the minimum rate of return on an investment that investors expect or require to make it worthwhile.