An industry's current profitability:
A)On its own tends to be a poor predictor of future profitability
B)Is an excellent predictor of its future profitability
C)Explains the past in that industry
D)Is determined by the forces of competition and so many other factors that gaining insights into its causes is almost impossible

Question

Quizplus · Accepted Answer

An industry's current profitability is influenced by a variety of factors such as competition, customer preferences, and technology. It may not provide a reliable indication of its future profitability. Therefore, Choice A is the best answer.

An Industry's Current Profitability