Question

Ratio Analysis, Common size Income Statement, IFAS and Section IV of your SA Section IV – Internal Environment is about strengths and weaknesses, S and W, respectively. Use the content structure of Section IV (

A. Corporate Structure;
B. Corporate Culture;
C. Corporate Functions (mkt, fin, R&D, etc);
D. Summary of Internal Factors) to present your ideas. Do not forget to use financial ratios when presenting the S and W for finance in Corporate

Answer 1

The four-firm concentration ratio and the Herfindahl-Hirschman index are tools used to measure competition in a market. They have weaknesses, but antitrust regulators have adapted their approach.

Step-by-step explanation:

The four-firm concentration ratio and the Herfindahl-Hirschman index are both tools used to measure the extent of competition in a market. The four-firm concentration ratio calculates the market share of the four largest firms in the market, while the Herfindahl-Hirschman index takes into account the market shares of all firms, squares them, and sums them. Both measures have weaknesses, such as assuming a well-defined market and similar competitive conditions across industries. These weaknesses have led to changes in approach by antitrust regulators in recent years.