Which of the Following Statements Accurately Describes Firm Effects

question 16

Multiple Choice

Which of the following statements accurately describes firm effects?

• A) They attribute firm performance to the industry in which the firm competes.
• B) They attribute firm performance to the actions managers take within a chosen industry.
• C) They refer to the value-creation potential of a large, diversified enterprise.
• D) They refer to the external circumstances surrounding all the firms in an industry.

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Definitions:

Highly Cohesive

Highly cohesive describes a group or material that sticks together strongly, in social contexts referring to a group closely united in purpose or function.

Strategic Planning

The process of defining a direction for an organization by setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions.

External Threat

A danger or risk stemming from the environment outside of oneself or one's organization.

Reciprocal-Concession Effect

A psychological principle where individuals feel compelled to make concessions to others when concessions are made to them, particularly in negotiation contexts.