When Calculating the Weighted Industry Attractiveness Scores, We Find the More

question 81

Multiple Choice

When calculating the weighted industry attractiveness scores, we find the more intensely competitive an industry is

• A)the lower the attractiveness weighting for that industry.
• B)the higher the attractiveness weighting for that industry.
• C)suggests the resources are beyond the parent company's reach.
• D)suggests the industry attractiveness measures have been incorrectly weighted.
• E)the more likely the company's profit and revenues will be intensive.

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Definitions:

Stock Option Plan

A compensation scheme in which employees are given the option to purchase company stock at a discounted price, intended to align their interests with those of the company's shareholders.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees, indicating the stability and retention capacity of a workplace.

Measurement Date

The specific point in time at which the value of an asset or liability is determined for accounting purposes.

Intrinsic Value Method

A valuation technique which determines the underlying worth of an asset based on its perceived or calculated true value, rather than its current market price or book value.