The Most Useful Approach to Forecasting Industry Profitability in the Future

question 1

Multiple Choice

The most useful approach to forecasting industry profitability in the future is:

• A)To estimate the industry's revenues and costs in future years
• B)To use an industry's probability at similar stages of the business cycle in the past as an indicator of future profitability
• C)To extrapolate the trend of industry profitability into the future
• D)To understand how the industry's structure has determined competitive intensity and profitability in the past,then to use information on an industry's changing structure to predict how profitability is likely to change in the future

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Definitions:

Central-Nervous-System Activity

Refers to the functions and processes carried out by the brain and spinal cord.

Maturational

Related to or involving the process of maturation or coming of age, involving the natural progression of physical or psychological growth and development.

Situational

Relating to or dependent upon a particular set of circumstances or context at a given time.

Actual

Real and existing in fact, not merely potential or theoretical.