Which of the Following Is NOT an Appropriate Guideline for Developing

question 1

Multiple Choice

Which of the following is NOT an appropriate guideline for developing a strategic group map for a given industry?

• A) The variables chosen as axes for the map should indicate important differences among rival approaches.
• B) The variables chosen as axes for the map don't have to be either quantitative or continuous. They can be discrete variables.
• C) The variables chosen as axes for the map should be highly correlated.
• D) Several maps should be drawn if more than one pair of variables give different exposures to the competitive positioning relationships present in the industry structure.
• E) The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group.

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Definitions:

Regressive Rate Structure

A tax system where the tax rate decreases as the taxable amount increases, placing a higher burden on lower earners relative to higher earners.

Marginal Tax Rate

The rate at which the next dollar of taxable income will be taxed, a tool used to gauge the impact of additional income or deductions on income tax.

Taxable Income

The amount of income used to calculate how much the tax will be for an individual or a corporation, after all deductions and exemptions.

Tax Liability

The total amount of tax owed to the IRS by an individual or business for a given tax year.