Competitive Advantage Rather Than Industry Attractiveness Is Nowadays Understood to Be

question 32

True/False

Competitive advantage rather than industry attractiveness is nowadays understood to be the more important source of profit, in general

---

Definitions:

Cash Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents.

Average Collection Period

The average number of days it takes for a business to receive payment from its customers for invoices issued.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue; calculated by dividing sales by total assets.

Fixed-Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales, indicating how well assets are being managed.