To Create a Successful Business Model,managers Must Choose a Set

question 1

Multiple Choice

To create a successful business model,managers must choose a set of business-level strategies that

• A) allow the company to better compete with rivals within an industry.
• B) help them decide what businesses to enter and exit.
• C) help build an organizational structure that contains multiple businesses.
• D) work together to give a company a competitive advantage over its rivals.
• E) help it to diversify to better leverage distinctive competencies.

---

Definitions:

Interest Expense

The cost of borrowing money.

Income Tax Expense

The cost associated with income taxes owed to federal, state, or local governments, recognized in the accounting period in which the income was earned.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Income Before Taxes

Income before taxes is a measure of a company's profitability before any tax expense has been deducted from revenues.