In Order to Build a Competitive Advantage, a Firm Must

question 30

Multiple Choice

In order to build a competitive advantage, a firm must

• A) integrate its resources to form capabilities
• B) develop competencies that are distinctive and rare
• C) create value for its customers
• D) all of these are required for a competitive advantage

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Definitions:

Amortization of Discount

The gradual reduction of a bond discount over the life of the bond, effectively increasing the bond's book value to its face value at maturity.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Bonds Payable

Long-term liabilities represented by bonds that a company must repay to investors at a specified maturity date.