Competitive Advantage Can Be Defined as

question 19

Multiple Choice

Competitive advantage can be defined as

• A)the difference between a firm's return on assets and its return on sales.
• B)a firm's ability to earn a persistently higher profit margin than its rivals.
• C)a firm's ability to earn a persistently higher profit rate than its rivals.
• D)a firm's ability to outwit its competitors.

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Definitions:

Bond Premium

The difference between the selling price of a bond and the bond’s face value when the bond is sold for more than par.

Effective-Interest Amortization

A method of amortizing a bond discount or bond premium that reflects the effective interest rate a company pays bondholders over the life of a bond.

Coupon Interest Rate

The annual interest rate paid by a bond expressed as a percentage of its face value.

Present Value Factor

A factor used to calculate the present value of a sum to be received in the future, considering a specific interest rate over a certain period.