Which of the Following Choices May Lead to Competitive Advantage

question 65

Multiple Choice

Which of the following choices may lead to competitive advantage: 1. new products, services, and business models; 2. charging less for superior products; 3. responding to customers in real time?

• A) 1 only
• B) 1 and 2
• C) 2 and 3
• D) 1, 2, and 3

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Definitions:

After-Tax Basis

Financial calculations or comparisons made after accounting for the impact of taxes.

Cost of Debt

The effective rate that a company pays on its current debt, including interest payments and fees.

Capital-Asset-Pricing Model

A model used in finance to determine a theoretically appropriate required rate of return of an asset, considering its risk relative to the market.

Dividend Growth Approach

A method of valuing a company's stock based on the assumption that dividends will grow at a constant rate indefinitely.