A Competitive Advantage

question 25

Multiple Choice

A competitive advantage

• A)can be permanent if the firm has successfully implemented the strategic management process.
• B)entails reducing investors' risk to near zero.
• C)can be identified only if it has been unsuccessfully challenged by competitors.
• D)exists when competing firms are unable to find investors.

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Definitions:

Multiple-Step

An income statement format that separates operating revenues and expenses from non-operating ones to calculate net income.

Operating Expenses

Costs associated with the daily operations of a business, excluding cost of goods sold, directly related to generating revenue.

Nonoperating Activities

Nonoperating activities involve the revenues and expenses that are not related to the core operations of a business.

Gross Profit Rate

The ratio of gross profit to net sales, expressing the percentage of revenue that exceeds the cost of goods sold.