According to Porter, Strategies Allow Organizations to Gain Competitive Advantage

question 98

True/False

According to Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and decentralization.

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Definitions:

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a specific accounting period before transferring the net income to retained earnings.

Net Income

Final earnings of a corporation post deductions of expenses and taxes from its aggregate revenue.

Revenues

Income generated from normal business operations, including sales of goods and services, fees, commissions, and other sources.

Expenses

Costs incurred in the process of earning revenue, encompassing a broad range of spending from operational to administrative.