A Competitive Advantage Exists When A

question 22

Multiple Choice

A competitive advantage exists when a:

• A) firm matches a core competency to opportunities it has discovered in the marketplace.
• B) firm compares the quality of its goods, services, or processes with that of its best-performing competitors.
• C) combination of circumstances and timing allows a firm to reach an attractive target market.
• D) firm observes a fit between the key requirements of a market and its own capabilities.
• E) firm has a strong marketing plan.

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Definitions:

Legal Purposes

Activities or actions that are undertaken in accordance with law and designed to effectuate legal ends.

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its business or to pay debt.

Net Income

The final income of a firm following the deduction of all expenditures, taxes, and interest from the gross revenue.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.