Question

Any firm that becomes part of an industry that is generally profitable and creates value will also be profitable and create value simply by being part of the industry. a. True b. False

Answer 1

Answer:

False.

Explanation:

The success of any industry is because of the fact that each and every firm in that particular industry is operating successfully and is adding its own value in the growth of the industry. Just by being a part of a successful industry does not make a firm to be considered successful. It has to perform in order to create value and contribute the same at an industry level. There is a number of firms in a single industry which are competing with one another. Thus, performing is important for a firm to create value and be successfully efficient in the industry to which it belongs.