The Most Useful Approach to Forecasting Industry Profitability in the Future

Multiple Choice

The most useful approach to forecasting industry profitability in the future is:

A) To estimate the industry's revenues and costs in future years
B) To use an industry's probability at similar stages of the business cycle in the past as an indicator of future profitability
C) To extrapolate the trend of industry profitability into the future
D) To understand how the industry's structure has determined competitive intensity and profitability in the past,then to use information on an industry's changing structure to predict how profitability is likely to change in the future