Competitive Advantage Typically Leads To

question 30

Multiple Choice

Competitive advantage typically leads to:

• A) a defective business model.
• B) average profitability within an industry.
• C) superior profitability.
• D) the Icarus paradox.
• E) barriers to changes in the organization.

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Definitions:

Profit Margin

The ratio of net income to revenue, indicating how much profit is made on average from sales.

Authority

The authority or capability to issue commands, make choices, and ensure compliance.

Decision

The act or process of choosing a particular action among various alternatives based on the expected outcomes.

Residual Income

The income that remains after deducting all costs, expenses, and taxes from total revenues.