As Noted in Chapter 5,Microsoft Is Many Times Larger Than

question 73

Multiple Choice

As noted in Chapter 5,Microsoft is many times larger than Google and records higher net income,return on assets,and return on equity in absolute terms when it comes to accounting profitability.However,when looking at normalized stock returns,Google has outperformed both Microsoft and the NASDAQ-100 index by a wide margin over the 2005-2010 time period.Suppose you were a manager for Microsoft.Evaluating this information would tell you that:

• A) Microsoft has a sustained competitive advantage from a shareholder value creation framework.
• B) Google has a sustained competitive advantage from a shareholder value creation framework.
• C) Both Microsoft and Google have sustained competitive advantages from a shareholder value creation framework.
• D) Google has a competitive disadvantage from a shareholder value creation framework.

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Definitions:

Humour In Stress

Utilizing humor as a coping mechanism to alleviate the effects of stress.

Defence Mechanism

Unconscious mental tactics employed by people to defend themselves against anxiety or to escape from situations they are unable to deal with at the moment.

Constructive Coping

A method of dealing with stress in a positive way, employing strategies that are healthy and productive, rather than harmful or avoidant.

Defensive Coping

Psychological strategies used to manage stress, protect self-esteem, and justify actions to mitigate the impact of negative events.