Underperformance Relative to Other Firms in the Same Industry or the Industry

question 80

Multiple Choice

Underperformance relative to other firms in the same industry or the industry average results in a(n) ________ for a firm.

• A) sustainable competitive advantage
• B) increased power distance
• C) diseconomies of scope
• D) competitive disadvantage

---

Definitions:

Articles of Confederation

The original constitution of the 13 American states, ratified in 1781, which was eventually replaced by the U.S. Constitution due to its weaknesses.

Inability to Raise Funds

Describes a situation, often in political campaigns or non-profit organizations, where there is a significant challenge or failure in generating the necessary financial support to sustain operations or reach goals.

Declaration of Independence

The historical document in which the Thirteen Colonies declared themselves independent from British rule in 1776.

Legitimacy of New Nation

The recognition and acceptance by the international community and its own citizens of a newly established country's sovereignty and governance.