Which of the Following Statements About Competitive Advantage Is True

question 24

Multiple Choice

Which of the following statements about competitive advantage is true?

• A) It is unaffected by the strategies taken by the company.
• B) Sustainability is achieved when it lasts for three months.
• C) It exists only when the company's profitability is greater than the 10 highest grossing firms in the world.
• D) It exists only when the company's profitability is greater than the average profitability and profit growth of its rivals.
• E) It is seldom affected by the business model of the company.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term liquidity.

Financial Data

Numeric information representing the financial performance, position, and cash flows of a company.

Current Ratio

A metric that evaluates how well a business can handle its short-term financial commitments due within a year.

Financial Data

Quantitative information about a company's financial position, performance, and cash flow, which is used for analysis and decision-making.