There Are Three Building Blocks in Gaining a Competitive Advantage

question 117

True/False

There are three building blocks in gaining a competitive advantage.

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Definitions:

Operating Assets

Resources owned by a business that are used in its day-to-day operations to generate revenue, such as machinery, buildings, and equipment.

Net Operating Income

The profit a company generates from its operations, before taxes and interest, calculated as gross income minus operating expenses.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.

Operating Assets

Assets that are used for the day-to-day operations of a business, including cash, inventory, and property, plant, and equipment.