A Realized Competitive Advantage Becomes Sustainable When

question 55

Multiple Choice

A realized competitive advantage becomes sustainable when:

• A) It is unique, valuable, and based on strong financial resources
• B) It involves all of the functional areas of the organization
• C) It is based on physical assets rather than knowledge
• D) It is based on a resource or capability that is difficult to imitate by competitors and there is no readily available substitute

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Definitions:

Unamortized Purchase Discrepancy

The portion of the purchase price that has not yet been allocated or amortized over the assets acquired in a transaction.

Equity Method

An accounting principle used for incorporating the investor's share of associates' profits or losses, contributing to the investor's book value of the investment.

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the owners' claim on the business.

Cash Consideration

The amount of cash that is paid or received during transactions, such as acquisitions or sales of assets.