The Building Blocks of Competitive Advantage Include

question 1

Multiple Choice

The building blocks of competitive advantage include:

• A) Efficiency
• B) Innovation
• C) Size
• D) Customer responsiveness
• E) All of the above

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Definitions:

Acid-test Ratio

A stringent indicator of a company’s short-term liquidity, calculated by dividing liquid assets by current liabilities, excluding inventory.

Debt-to-equity Ratio

The ratio that indicates the mix between shareholders' equity and debt in the capital structure used to finance assets.

Receivable Turnover

A financial metric that measures how efficiently a company collects on its accounts receivable, calculated as sales divided by accounts receivable.

Inventory Turnover

A ratio showing how often a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.