Which of the following factors is crucial in choosing an investment strategy to pursue and thus maximize the profitability of a company's business model?
A) The competitive advantage that a company's business model gives it in an industry relative to competitors
B) The stage of the industry life cycle
C) The age of the firm
D) The competitive advantage that a company's business model gives it in an industry relative to competitors and the stage of the industry life cycle
E) All of these choices

Question

Quizplus · Accepted Answer

Both the competitive advantage that a company's business model gives it in an industry relative to competitors and the stage of the industry life cycle are important factors to consider when choosing an investment strategy to maximize profitability. A company with a strong competitive advantage in a growing industry may require a different investment strategy than one without a competitive advantage in a declining industry. The age of the firm may also be important to consider, but it is not as crucial as the other factors listed. Therefore, option D is the best choice.

Which of the Following Factors Is Crucial in Choosing an Investment