From an Economic Value Creation Perspective,competitive Advantage Is Achieved by the Firm

question 7

Multiple Choice

From an economic value creation perspective,competitive advantage is achieved by the firm that does which of the following?

• A) Creates and captures more economic value than its rivals.
• B) Ensures that the value captured is evenly divided between producer and consumer.
• C) Concentrates on tangible assets available as opposed to intangible assets.
• D) Formulates strategy based primarily on the balanced-scorecard approach.

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Definitions:

Bond Rating

An assessment of the credit quality of a bond, generally given by a rating agency.

Specific Assets

Assets that are designated for a particular use or are unique to a business's operation.

Risk

The possibility of losing some or all of an investment, or the uncertainty surrounding the return on an investment.

Convertible Bonds

Debt securities issued by a corporation that can be converted into a specified number of shares of the issuing company's stock.