The Ability of Disney to Maintain Its Competitive Advantage Through

question 19

Multiple Choice

The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would be severely weakened if:

• A) theme parks with alternative cartoon characters were built in large numbers.
• B) numerous lawsuits against copyright thieves tainted the reputation of the company.
• C) Disney attempted to move beyond its traditional industry.
• D) Disney's cartoon characters became widely perceived as old-fashioned and unappealing.

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Definitions:

Insider Trading

The illegal buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock.

Solar Power

The conversion of energy from sunlight into electricity, either directly using photovoltaic cells or indirectly through concentrated solar power systems.

Violation

The act of breaching, disobeying, or infringing upon a law, rule, or agreement.

Profit

The financial gain obtained when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.