When attempting to identify the economic characteristics of the industry in which a particular firm participates an analyst might ask which of the following questions?
A) Does technological change play an important role in the firm maintaining a competitive advantage?
B) Has the firm diversified across several geographic markets?
C) Has the firm recognized revenues at the proper time?
D) Has the firm structured transactions to make it look more profitable than economic conditions suggest?

Question

Quizplus · Accepted Answer

The question about technological change is relevant to understanding the economic characteristics of an industry, as it can significantly impact competitive dynamics and industry evolution. The other options are more related to firm-specific strategies and accounting practices rather than industry characteristics.

When Attempting to Identify the Economic Characteristics of the Industry