During an interview for a CEO position, Elena's potential employers ask her, "If you get this job, will you focus more on industry effects or firm effects?" What should her answer be?
A) "Neither. I would focus on unexplained variances. They are the most mysterious effects and the most powerful."
B) "Firm effects. I will be able to have the most impact on those."
C) "Industry effects. They have the most substantial effect on superior firm performance."
D) "Neither. I would focus on business cycle effects. These are the most predictable, so they are worth the most effort."

Question

Quizplus · Accepted Answer

While all these effects can change a firm's performance, firm effects have the biggest impact-up to 55%. Because firm effects come from the actions managers take, Elena would be able to have the most impact on those.

During an Interview for a CEO Position, Elena's Potential Employers