According to Michael Porter, to Have a Competitive Advantage, a Company

question 105

Multiple Choice

According to Michael Porter, to have a competitive advantage, a company must ultimately be able to give customers _______________.

• A) the best possible product
• B) the best possible service
• C) the best possible price
• D) superior value for their money
• E) everything they want

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Definitions:

Lessor

The party in a lease agreement that owns the asset and grants the lessee the right to use the asset in return for lease payments.

Bargain Purchase Option

A lease clause allowing the lessee to purchase the leased asset at a price significantly lower than its expected fair market value at the end of the lease term.

Leased Asset's Useful Life

The expected period over which a leased asset is anticipated to be used by the lessee, often corresponding to the lease term unless a shorter period is more representative.

Minimum Lease Payments

The lowest amount that a lessee is expected to pay over the lease term, including both principal and interest components.