When an Industry Is Subject to Externally Generated Changes,the Firms

question 33

Multiple Choice

When an industry is subject to externally generated changes,the firms which are most likely to establish a competitive advantage are:

• A)Those with the highest market share
• B)Those that that respond most quickly to the change and have the resources and capabilities that are most closely aligned to the emerging success factors
• C)Those with the greatest agility and capacity for innovation
• D)A combination of (a), (b),and (c).

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Definitions:

Convexity

A measure of the curvature or the degree of the curve in the relationship between bond prices and bond yields, indicating how the duration of a bond changes as the interest rate changes.

Bond Price Curve

A graphical representation of the relationship between the price of bonds and their respective maturities.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount lent, deposited, or borrowed.

Liquidity Preference Theory

The theory that investors prefer to have their resources in liquid forms, influencing interest rates and financial market behavior.