In Order to Ensure That It Has a Competitive Advantage

question 65

Multiple Choice

In order to ensure that it has a competitive advantage over its competitors, Best Star, Ltd., decides to acquire the much smaller KAG, Inc. The move is an example of a

• A)vision.
• B)business model.
• C)strategy.
• D)mission.

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Definitions:

Inventory Stock-outs

Occurrences when items are not available in inventory, leading to missed sales or delays.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and operational efficiency.

Accounts Payable

Money owed by a company to its creditors for goods or services that have been delivered but not yet paid for.

Shortage Costs

Expenses incurred when demand exceeds supply, including lost sales and the cost of expedited orders or production to meet demand.