Which of the Following Is Particularly Pertinent in Evaluating Whether

question 23

Multiple Choice

Which of the following is particularly pertinent in evaluating whether an industry presents a sufficiently attractive business opportunity?

• A) The industry's growth potential,whether competition appears destined to become stronger or weaker,and whether the industry's overall profit prospects are above average,average,or below average
• B) An assessment of which firms in the industry have the best and worst competitive strategies,whether the number of strategic groups in the industry is increasing or decreasing,and whether economies of scale and experience curve effects are a key success factor
• C) Whether there are more than five key success factors and more than five barriers to entry
• D) Constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group
• E) Whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed. The government sets the rate, which can apply to income, capital gains, or other financial figures.

Straight-Line Depreciation

A procedure for assigning the cost of a solid asset over its productive lifetime in equal annual figures.

Marginal Tax Rates

The rate at which an individual or corporation's next dollar of taxable income is taxed.

Pre-Tax Loan Rate

The interest rate on a loan before taking into account any tax deductions that might apply.