If a Resource or Capability Is Valuable and Rare but Not

question 32

Multiple Choice

If a resource or capability is valuable and rare but not costly to imitate, exploiting this resource will generate a(n)

• A) sustained competitive advantage.
• B) perfectly competitive environment.
• C) temporary competitive advantage.
• D) environment characterized by competitive parity.

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how effectively a company collects debts from its customers over a period, indicating the efficiency of credit policies and collection efforts.

Net Credit Sales

The net sales of a company, calculated by subtracting returns, discounts, and allowances for damaged or missing merchandise from the total sales.

Ending Balance

The difference between footings in a T account.

Asset Turnover Ratio

A ratio that indicates how efficiently a company uses its assets to generate sales and thus helps measure the overall efficiency of the company.