Ms Gibson Has Come Up with the Idea of Offering

question 34

Multiple Choice

Ms. Gibson has come up with the idea of offering free house painting if the job is not completed within the time agreed. Which of the following best describes the competitive advantage perspective that Ms. Gibson is proposing?

• A) Resource-based view
• B) Guerilla view
• C) Industrial organization view
• D) All of the answer choices are correct.
• E) None of the answer choices is correct.

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Definitions:

Sustainable Rates Growth

The peak growth rate a firm can achieve in its earnings without resorting to more debt financing or selling additional shares.

External Funding Needs

The amount of money a company needs to raise from outside sources to finance its operations or growth plans.

Negative External Financing

A situation where a company is reducing its external borrowing and financing activities, possibly indicating a shift towards internal funding methods.

External Financing Need

The amount of funding a firm requires from external sources to finance its planned investment or business activities beyond what is generated internally.