The Objective of a Competitive Strategy Is to

question 49

Multiple Choice

The objective of a competitive strategy is to

• A)establish a competitively powerful value chain.
• B)grow revenues at a faster annual rate than rivals are able to grow their revenues.
• C)lend greater detail to the company's business model.
• D)provide buyers superior value relative to the offerings of rival sellers in order to attain a competitive advantage.
• E)get the company into the best strategic group and then dominate it.

Get familiar with computing and interpreting the debt to assets ratio to assess a company's leverage and long-term solvency.

Understand how to use financial information to calculate ratios concerning the short-term financial stability of a company, such as the current and acid-test ratios.

Gain insight into the implications of financial decision-making and its impact on company profitability and solvency through analysis of financial data and ratios.

Understand the fundamental components and measures of international trade.

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Definitions:

Indirect Method

A financial reporting technique used in cash flow statements to adjust net income for changes in non-cash accounts to identify the actual cash inflow or outflow from operating activities.

Cash Dividends

Distributions of a corporation's earnings to shareholders in the form of cash.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking down the analysis to operating, investing, and financing activities.

Operating Activities

Activities directly related to the primary operations of a business, including production, sales, and distribution, which are reflected in its cash flow.