It Is Increasingly Difficult for a Firm to Develop and Sustain

question 51

Multiple Choice

It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and:

• A) the rapid development of the Internet's capabilities.
• B) extensive use of outsourcing within the borders of the United States.
• C) the declining number of inventions and patents developed by U.S.citizens.
• D) the simultaneous erosion of the U.S.work ethic and the U.S.education system.

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Definitions:

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but instead reinvested in the business or kept as reserve.

Expected Costs

The forecasted amount of expenses that will be incurred as a result of a certain action or decision.

Interest Rates

The cost of borrowing money or the return on investment, typically expressed as a percentage.

Present Value

The contemporary valuation of a future amount of money or cash flow sequence, based on an identified rate of return.