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

Current profitability is influenced by numerous variables, and the conditions that create a competitive edge shift frequently. Therefore, an industry’s current profitability cannot assure its future profitability without considering other factors.

An Industry's Current Profitability