A Company Can Create Competitive Advantage by

question 63

Multiple Choice

A company can create competitive advantage by

• A) lowering switching costs.
• B) refusing alliances.
• C) staying with the "tried and true" processes that competitors use.
• D) reducing barriers to entry.
• E) adding technology to its business process.

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Definitions:

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Cash Dividend

A disbursement by a corporation from its profits to its stockholders, typically as cash.

Increases

The act or process of becoming larger or greater in size, number, value, or amount.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually paying fixed dividends.