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:

Corporate Veil

A legal concept that separates the identity of a corporation from its shareholders, protecting them from being personally liable for the company's debts and obligations.

Promoter

An individual or entity that initiates the formation of a company, raises capital for it, and takes necessary steps to legally establish the business.

Initial Setting

The original conditions or parameters established at the beginning of a process or activity.

Public Share Offering

The process of offering shares of a private corporation to the public in a new stock issuance, allowing the company to raise capital from public investors.