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:

Operating Divisions

Sections of a business organization that operate semi-autonomously, typically responsible for their own budgeting and profit and loss.

Variable Costs

Expenses that change in proportion to the level of production or sales volume.

Fixed Costs

Expenses that do not change regardless of the level of production, like leases and salaries.

Peak-period Demand

Refers to higher demand for products or services during certain periods, often influenced by seasons, holidays, or specific events.