Question 18.

Achieving productivity gains from process innovation usually requires that new production processes are matched by other management changes-including changes in human resource management. [See p.183]

True

False

Question 19

What is the difference between differentiation and segmentation? [See p.189]

There is no difference between the two

Differentiation deals with the how a firm chooses to compete, while segmentation describes where in the entire market a firm chooses to compete

Differentiation is a firms strategic choice, whereas segmentation is given by its environment

Segmentation is the head of the marketing departments responsibility, whereas the CEO is in charge of differentiation

Question 20

If the prices of securities fully reflect all the information available, then passive investors are best advised to invest in index-based mutual funds (unit trusts) with the lowest administration costs. [See p. 177]

True

False