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The Key to Having a Sustainable Competitive Advantage Is to Operate

question 14

True/False

The key to having a sustainable competitive advantage is to operate in a way that is difficult to imitate.


Definitions:

Principal-Agent Relationship

A relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in conducting transactions with third parties.

Strict Liability

A legal principle where a party is responsible for damages caused by their actions, regardless of negligence or intent.

Voting Agreement

A legal pact among shareholders to vote their shares in a certain manner.

Business Judgment Rule

A legal principle that protects company directors from liability for decisions made in good faith and in the interest of the company.

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