Narrative 6-1 the Rolling Stones Are the Most Successful Act in the in the Music

question 108

Multiple Choice

Narrative 6-1
The Rolling Stones are the most successful act in the music industry largely because they run the band as a business-Rolling Stones Inc. Since 1989, the band has generated more than $1.5 billion in gross revenues. That total includes sales of records, song rights, merchandising, sponsorship money, and touring. Unlike some other groups, the Stones carry no antibusiness baggage. The company licenses over 50 products from underwear to formalwear. Its record earnings from one tour came from the Voodoo Lounge tour in 1994, which grossed $121.2 million. Over the past decade, the group's songwriting has made about $56 million. The next time you see Mick Jagger, think of him as the highly successful CEO of a mid-sized corporation. The goal of the corporation is to continue providing products that differ from its competitors' offerings so that fans will continue to pay a premium price for what it sells.
-Refer to the Narrative 6-1.Which of the following can the Rolling Stones be said to have,since other music groups cannot duplicate the value the band is providing to customers?

• A) contingency management style
• B) sustainable competitive advantage
• C) resource diversity
• D) resource munificence

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Definitions:

Plug Variable

A variable that is used in financial modeling to make the balance sheet balance, often representing the financing needed or surplus cash.

External Financing

Funds that a business obtains from outside sources to finance its operations, growth, or projects, which can include loans, equity investments, and bonds.

Pro Forma Balance Sheet

A financial statement projecting future financial position of a company based on expected future transactions.