A Company's Competitive Advantage Is More Durable When

question 21

Multiple Choice

A company's competitive advantage is more durable when:

• A) barriers to imitation are low and there are few capable competitors.
• B) barriers to imitation are high and there are many capable competitors.
• C) barriers to imitation are high and the industry is stable.
• D) the industry is stable and there are many capable competitors.
• E) the industry is stable and barriers to imitation are low.

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Definitions:

Direct Ownership Interests

Ownership interest in an asset or entity without intermediaries, implying direct control or influence over the asset or entity.

Indirect Ownership Interest

A stake in a company or entity that is not held directly by the owner but through another vehicle, such as ownership of a parent company that owns the entity.

NCI Indirect Ownership Interest

Refers to the portion of equity in a subsidiary attributed to non-controlling interests, based on their indirect ownership stake.

Indirect Ownership Interests

Refers to a situation where an entity owns an interest in another entity through an intermediary rather than directly.