Which of the Following Is NOT a Factor Affecting Sustainability

question 96

Multiple Choice

Which of the following is NOT a factor affecting sustainability of a competitive advantage?

• A) The availability of substitutes for a firm's core competence.
• B) The rate at which obsolescence of the core competence occurs because of environmental changes.
• C) The imitability of a core competence.
• D) The length of time the core competence has existed.

---

Definitions:

Carrying Value

The amount an asset is valued at on a balance sheet, subtracting depreciation and amortization.

Value Recovers

The process by which the market value of an asset increases after a period of decline.

Double Declining Balance

A method of accelerated depreciation which doubles the straight-line depreciation rate, resulting in higher depreciation expenses in the early years of an asset's life.

Depreciation Rate

The rate at which an asset's value is reduced over time for accounting and tax purposes.