Which of the Following Are Most Unlikely to Qualify as Driving

question 24

Multiple Choice

Which of the following are most unlikely to qualify as driving forces?

• A) changes in the long-term industry growth rate,the entry or exit of major firms,and changes in cost and efficiency
• B) increasing globalization of the industry and product innovation
• C) new Internet technology applications,new government regulations,and significant changes in government policy toward the industry
• D) mounting competition from substitutes and increasing efforts to collaborate with suppliers via strategic alliances
• E) changes in who buys the industry's product and how they use it

---

Definitions:

Coefficient of Variation

A statistical measure that describes the standard deviation of an asset's returns relative to its mean, used as a risk assessment tool.

Real Options

Real options refer to choices available in investment projects that allow managers to make decisions that can alter the project's course based on future uncertainties.

Real Options

The value of additional decision-making opportunities available to a business when investing in a project.

Real Option

A financial concept that represents the value of additional future investment opportunities available to a firm when it undertakes a capital investment project.