ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Industry analysis, as a form of market assessment, is crucial because it helps a business understand market conditions. It helps them forecast demand and supply and, consequently, financial returns from the business.
Detailed explanation-2: -Industry analysis is useful for: understanding a company’s business and business environment; identifying active equity investment opportunities; formulating an industry or sector rotation strategy; and.
Detailed explanation-3: -Major success factors for industry analysis: Factors include economics, trends, social and political factors, and changes in technology, and the rate of change. If company understand the forces at work in the overall industry, then it will help to formulate strategies, and do strategic planning.
Detailed explanation-4: -Competition and demand-supply pattern has a great role to play in industry analysis.