Which of the Following Is Not an Appropriate Guideline for Developing

question 16

Multiple Choice

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

• A)Variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace.
• B)Variables chosen as axes for the map can be quantitative,qualitative,or discrete and defined in terms of distinct classes and combinations.
• C)Variables selected as axes for the map should be highly correlated.
• D)Several maps should be drawn if more than one pair of variables can help illuminate differences in the competitive positioning of industry members.
• E)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:

Tax Depreciation

The allocation of an asset's cost over its useful life for the purposes of tax deductions, according to IRS rules and schedules.

Book Depreciation

The method of calculating the depreciation of an asset for record-keeping and tax purposes.

Tax Rate

The rate at which a person or company's earnings are taxed.

Municipal Bond Interest

The interest income received from bonds issued by local or state governments, often exempt from federal income tax and sometimes from state and local taxes.