Cost Leadership Is a Sustainable Source of Competitive Advantage Only

question 66

True/False

Cost leadership is a sustainable source of competitive advantage only if no barriers exist that prevent competitors from achieving the same low costs.

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Definitions:

1933 Act

Refers to the Securities Act of 1933, a U.S. legislation enacted to ensure more transparency in financial statements and to establish laws against misrepresentation and fraudulent activities in the securities markets.

Registration

The process of recording information, typically related to a person, company, or property, in an official or regulatory database.

Sarbanes-Oxley Act

A U.S. law enacted to protect investors by making corporate disclosures more reliable and accurate following the Enron and WorldCom financial scandals.

Audit Clients

Entities, whether individuals or organizations, whose financial statements and practices are examined in an audit for accuracy, compliance, and truthfulness.