Which of the following statements accurately describes firm effects?
A) They attribute firm performance to the industry in which the firm competes.
B) They attribute firm performance to the actions managers take within a chosen industry.
C) They refer to the value-creation potential of a large, diversified enterprise.
D) They refer to the external circumstances surrounding all the firms in an industry.

Question

Quizplus · Accepted Answer

Firm effects attribute firm performance to the actions managers take within a chosen industry. Managers' actions tend to be more important in determining firm performance than the forces exerted on the firm by its external environment.

Which of the Following Statements Accurately Describes Firm Effects