Which of the following is an accurate statement about the relationship between firm effects and industry effects?
A) Firm effects deal with the action of competitors; industry effects deal with internal circumstances.
B) Firm effects deal with a manager's actions; industry effects deal with external circumstances.
C) Firm effects deal with a manager's actions; industry effects deal with internal circumstances.
D) Firm effects deal with the action of competitors; industry effects deal with external circumstances.

Question

Quizplus · Accepted Answer

Firm effects deal with a manager's actions, such as the actions that managers take toward employees. On the other hand, industry effects deal with external circumstances, such as types of products and services offered.

Which of the Following Is an Accurate Statement About the Relationship