The Key to Maintaining Competitive Advantage and Earning Above-Average Returns

question 49

Multiple Choice

The key to maintaining competitive advantage and earning above-average returns over the long run is to effectively manage current core competencies

• A) in a way that uniquely bundles and leverages the firm's existing resources.
• B) and develop a continuous stream of new competitive advantages.
• C) and imitate the core competencies of successful competitors.
• D) in order to preserve and enhance them against the firm's competitors.

---

Definitions:

Treasury Stock

Treasury stock represents shares of a company's own stock that it has reacquired and holds, which do not confer voting rights or dividend payments.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of a company's assets and earnings.

Retained Earnings

The portion of net income that is kept within the company rather than distributed to shareholders as dividends, often used for reinvestment.

Net Income

The amount of profit left over after all operating expenses, taxes, and interest payments have been deducted from total revenue.