Rapida Inc

question 97

Multiple Choice

Rapida Inc. and Click Inc. are two companies that have been manufacturing typewriters for almost 30 years. Due to the reduced demand for typewriters today, both companies' average return on invested capital is approximately -5 percent. The current industry average is 2 percent. In this scenario, Rapida Inc. and Click Inc. most likely have

• A) competitive advantage over other firms in their industry.
• B) competitive parity with each other.
• C) strategic alliance with each other.
• D) economies of scope instead of economies of scale.

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Definitions:

Settlement

refers to the agreement reached by disputing parties outside of court to resolve a lawsuit, often involving the payment of compensation or undertaking specific actions.

Warranties

Promises or guarantees made by a seller regarding the condition or functionality of a product or service.

Payor Bank

The bank that is responsible for paying the draft or check written by a depositor.

Uncertified Check

A check that has not been verified or guaranteed by the bank upon which it is drawn.