Which of the Following Examples Illustrates a Firm That Has

question 108

Multiple Choice

Which of the following examples illustrates a firm that has achieved competitive advantage through technology?

• A) A firm that has the leanest production processes
• B) A firm that focuses on producing zero defect products
• C) A firm that relies on experts to develop a product
• D) A firm that reduces its advertising and promotional costs
• E) A firm that caters to only a selected few customer needs

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Definitions:

Operating Activities

Transactions and other events related to the core business functions of an entity, generally involving the production, sales, and delivery of goods and services.

Gain

A financial increase resulting from a transaction that exceeds the cost or value of the item sold or exchanged.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed directly.