The Fact That in Its 2010 Annual Report,Microsoft Outperformed the S&P

question 36

Multiple Choice

The fact that in its 2010 annual report,Microsoft outperformed the S&P but underperformed in the NASDAQ over the previous five years indicates all of the following EXCEPT:

• A) Benchmarks are important to consider in competitive advantage.
• B) Competitive advantage is defined in relative terms.
• C) The NASDAQ is not a good indicator of competitive advantage.
• D) Competitive advantage can be difficult to assess.

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a particular period, often used to assess whether the entity can maintain its operations and obligations.

Units Produced

The total number of finished products that a company manufactures during a specific period.

Ending Inventory

The total value of all unsold goods held by a company at the end of an accounting period.

Budgeting

The process of creating a plan to spend your money, forecasting future income and expenses.