Which of the Following Is True About Rareness and Advanced

question 28

Multiple Choice

Which of the following is true about rareness and advanced factors of production?

• A) Process knowledge, organizational architecture, and intellectual property are more difficult to imitate which results in a better chance in achieving long-term, sustainable competitive advantage.
• B) Intellectual property is the only advanced factor of production that is unique enough to capture long-term, sustainable competitive advantage.
• C) Since most process knowledge and organizational architecture is purchased from outside providers, it can be copied by other firms and does not lead to the rarity necessary to result in long-term, sustainable competitive advantage.
• D) Advanced factors of production are not able to capture the uniqueness that basic factors of production can achieve and therefore do not factor into the pursuit of long-term, sustainable competitive advantage.
• E) Advanced factors of production are less likely to be rare and are in general easier for rivals to imitate resulting in the inability for firms to achieve long-term, sustainable competitive advantage.

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Definitions:

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to keep the account open.

Long Futures Position

Holding a futures contract that obligates the buyer to purchase the underlying asset at a specified price on a specified future date, typically anticipating a price rise.

Levered Investment

Levered Investment involves using borrowed funds in addition to one's own investment capital to enhance the potential return of an investment.

Long Stock Position

The ownership of shares in a company with the expectation that they will increase in value over time.