Technological Innovation Makes It Possible Not Only to Duplicate the Benefits

question 61

True/False

Technological innovation makes it possible not only to duplicate the benefits obtained from a company's distinctive advantage,but also quickly creates an opportunity to turn a company's competitive advantage into a competitive disadvantage.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, often relevant in investment and finance decisions.

Capital Budgeting

The process by which a business evaluates and selects major capital investments based on their potential to generate additional revenue or reduce costs.

Simple Rate of Return

A method to evaluate the profitability of an investment by dividing the annual incremental net operating income by the initial investment cost.

Operating Expenses

Costs associated with a company’s operational activities, excluding direct labor and materials, that are necessary to run the business.