What Hurdles Are Present in Calculating Industry Attractiveness Scores

question 87

Multiple Choice

What hurdles are present in calculating industry attractiveness scores?

• A) Deciding on the appropriate weights for the attractiveness measures
• B) Different analysts use different weights for the different attractiveness measures
• C) Gaining sufficient command of the industry to assign more accurate and objective ratings
• D) Deciding the impact of strategic fits to unrelated and related diversification
• E) Deciding whether a business is related or unrelated

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Definitions:

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue from an additional unit sold.

Marginal Revenue

The increase in revenue resulting from the sale of one additional unit of a product.

Maximum Level

The highest or utmost point, degree, or volume of something that can be achieved or reached.

Total Revenue

Total earnings from business activities such as selling goods or providing services, before removing any operational costs.