Which of the Following Statements About the Sources of Competitive

question 54

Multiple Choice

Which of the following statements about the sources of competitive advantage is true?

• A) The best companies choose one source of competitive advantage and perfect it.
• B) Managing the sources of competitive advantage is a zero-sum game where one source improves at the expense of the other.
• C) It is possible to improve quality and also enhance speed.
• D) Outsourcing certain functions is likely to decrease innovation.
• E) The faster the product is provided, the more innovation suffers.

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Definitions:

Legal Capital

The minimum amount of capital that a corporation is required to maintain, as mandated by corporate laws, to protect creditors.

Dividends

Shareholders' receipts of payments from a corporation, generally tied to the distribution of earnings.

Incorporated

A legal process used to form a corporate entity or company, recognized separately from its owners with its own legal rights.

Capital Account

An account on a country's balance of payments that records all transactions involving the purchase or sale of assets.