When Calculating Industry Attractiveness Scores,to Produce a Valid Response It

question 18

Multiple Choice

When calculating industry attractiveness scores,to produce a valid response it is necessary to

• A) ensure the appropriate weights are assigned to each measure and that the preparer has sufficient knowledge to rate the industry on each attractiveness measure.
• B) ensure the weights are assigned evenly so as not to bias the attractiveness scores.
• C) ensure at least three companies within the industry are clearly well-understood to ensure validated scores.
• D) be prepared to make an educated guess if the available information is skimpy.
• E) All of these choices are correct.

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Definitions:

Balanced Scorecard

A strategic planning and management system used by organizations to communicate what they are trying to accomplish, align day-to-day work with strategy, prioritize projects, and measure and monitor progress towards strategic targets.

OCEG Benchmarking

A process used by organizations to compare their GRC (governance, risk management, and compliance) processes and performance with others in the industry, facilitated by the OCEG (Open Compliance and Ethics Group).

Ethics Audit

A systematic evaluation of an organization’s ethical practices and policies, aimed at identifying strengths and areas for improvement.

Independent Party

An entity or individual not affiliated with any of the stakeholders involved in a situation, often used to review, assess, or decide on matters without bias.