Calculating Quantitative Industry Attractiveness Scores for Each Industry a Company

question 20

Multiple Choice

Calculating quantitative industry attractiveness scores for each industry a company has diversified into

• A)permits a ranking of the attractiveness of the various industry value chains,from best to worst.
• B)provides a basis for drawing analysis-based conclusions about the attractiveness of the industries a company has diversified into,both individually and as a group,and further to provide an indication of which industries offer the best and worst long-term prospects.
• C)helps ascertain which industries have the easiest-to-achieve key success factors and strategic fits.
• D)ignores seasonal and cyclical factors,industry profitability,and whether an industry has significant social,political,regulatory,and environmental problems.
• E)enables managers to get in position to rank the industries from most competitive to least competitive

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Definitions:

Impact Lag

The time it takes for the full effects of a monetary or fiscal policy to impact the economy after it has been implemented.

Borrow

The act of getting something from someone with the intention of returning it or its equivalent.

Reserves

Funds or assets set aside by individuals, institutions, or governments to meet future liabilities, emergencies, or regulatory requirements.

Reserve Ratio

A requirement set by central banks determining the minimum amount of reserves a bank must hold against deposits, influencing the bank's capacity to lend and create money.