Which of the Following Is Correct About a Sustainable Competitive

question 7

Multiple Choice

Which of the following is correct about a sustainable competitive advantage?

• A) It is not attractive because of its durability.
• B) It cannot be copied by the competition.
• C) It lowers costs by removing frills.
• D) It does not offer any low-priced products.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual increments.

Annual After-Tax Lease Payment

The yearly lease payment amount after accounting for tax deductions.

Straight-Line Depreciation

A method of depreciation that allocates an equal amount of the asset's cost to each year of its useful life.

Net Advantage To Leasing

The total financial benefits of leasing an asset compared to purchasing it, taking into account all costs and savings.