A single business strategy increases the firm's vulnerability to its competition and to changes in the external environment

Consider the following objective function and constraint: C(x) = 2x12 - 15x + 3x23 - 9x2 + 30, such that x1 = 3x2. Which of the following is the correct Lagrangian function?

A) L = 2x12 - 15x + 3x23 - 9x2 + 30 - ? (3x2 - x1) B) L = 2x12 - 15x + 3x23 - 9x2 + 30 - ? (x2 - 3x1) C) L = 2x12 - 15x + 3x23 - 9x2 + 30 - ? (3x1 - x2) D) L = 2x12 - 15x + 3x23 - 9x2 + 30 - ? (3x2 - 3x1)

Companies A and B are both in the same industry and generally compete against each other in the marketplace

Stock A has a P/E ratio of 15 while Stock B's P/E is 21. Which of the following is not true about the relative positioning of Stock A and Stock B? A) Stock B has lower perceived risk. B) Investor's are willing to pay a higher price for shares in Company B. C) Company A business performance is probably not as strong as Company B performance. D) All of the statements are correct.