What Evaluates Industry Attractiveness

question 79

Multiple Choice

What evaluates industry attractiveness?

• A) SWOT Analysis
• B) The Five Forces Model
• C) Value Chain Analysis
• D) Three Generic Strategies

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.

Margin of Safety

The difference between actual sales and the break-even point, which measures the cushion that a business has to withstand a sales downturn.

Sales Revenue

The total amount of money generated from sales of goods or services before any expenses are subtracted.

Operating Leverage

A measure of how revenue growth translates into growth in operational income, highlighting the impact of fixed costs on profits.