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Determining Firm Performance Is a Complex Interaction of Firm Effects

Question 40

Multiple Choice

Determining firm performance is a complex interaction of firm effects and industry effects,with other factors also considered.Based on historical analysis,what do we know about firm and industry effects?


A) Managerial actions rather than firm effects have a large role in firm performance.
B) Macro environmental effects such as a recession have more impact than either firm or industry effects.
C) Firm effects have more impact on performance than industry effects.
D) Industry effects have more impact on performance than firm effects.

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