One of the Drawbacks to the Accounting Profitability Approach to Measuring

question 28

Multiple Choice

One of the drawbacks to the accounting profitability approach to measuring competitive advantage is that it does not consider:

• A) Tangible assets such as land.
• B) Off-balance sheet items such as pension obligations.
• C) Profit earned per dollar.
• D) How the company performed in the past.

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Definitions:

Market Equilibrium

A condition in which the supply of a good matches demand, leaving neither surplus nor shortage in the market.

Environmental Indicators

Measurements, statistical data, and analysis used to represent the health of the environment, guide public policy, and inform the public.

Noncontroversial

Lacking in controversy, dispute, or disagreement; widely acceptable or agreed upon.

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.