Aardvark Corp. has three products. Two products together make up two-thirds of revenues and constitute 50 percent of company profits. Aardvark's third product makes up one third of sales. With profitability far above the industry average, this product is responsible for one half of Aardvark's profits. Which of the following statements regarding assessment of the general environment is accurate for Aardvark?

Question

Quizplus · Accepted Answer

Aardvark Corp. should monitor the general environment for changes that might affect the revenue and profitability of all products to ensure the overall success of the company. Since all three products contribute to the company's revenue and profitability, any changes in the general environment could have an impact on the company's overall performance. Therefore, monitoring the general environment for all products is essential for Aardvark Corp.