Essentially, There Are Only Two Basic Competitive Advantages: Lower Cost

question 6

True/False

Essentially, there are only two basic competitive advantages: lower cost than rivals and the ability to differentiate.

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Definitions:

GAAP

A set of widely followed rules and standards in financial reporting, termed Generally Accepted Accounting Principles.

Factoring Transaction

A financial arrangement where a business sells its accounts receivable to a third party at a discount to raise immediate capital.

Sales Returns

Transactions where customers return previously purchased merchandise for a refund or credit.

Notes Receivable

Notes Receivable are written promises for amounts to be received by a business, indicating that another party has agreed to pay the business a specific sum of money on a certain date.