Which of the Following Is Not a Shortcoming of the Concentration

question 3

Multiple Choice

Which of the following is not a shortcoming of the concentration ratio as a measure of the extent of competition in an industry?

• A)Concentration ratios do not include sales in the United States by foreign firms.
• B)Concentration ratios are calculated for the national market, even though the competition in some industries is mainly local.
• C)Concentration ratios assign weights to only the four largest firms in an industry.
• D)Concentration ratios do not address the fact that competition sometimes exists between firms in different industries.

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Definitions:

Strategic Planning

A process utilized by organizations to identify long-term goals, develop actionable strategies to achieve those goals, and allocate resources appropriately.

Rational Decision-Making

A process of making decisions based on logical and systematic analysis of available information and alternatives.

Organizational Problems

Issues or challenges faced by an organization that hinder its ability to achieve its goals or maintain effective operation.

Chief Executive Officer

A redefinition: The principal executive officer responsible for managing an organization's overall operations and making major corporate decisions.