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When Comparing Google and Microsoft,which Firm Has the Advantage in Absolute

question 90

Essay

When comparing Google and Microsoft,which firm has the advantage in absolute measures such as revenues and net income? Does this mean this firm has a competitive advantage?


Definitions:

Amortization

The gradual reduction of a debt or the allocation of the cost of an intangible asset over a period.

Cost Method

An accounting approach for investments where the investment is recorded at cost, and income is recognized only when dividends are received.

Retained Earnings

The portion of net income not distributed to shareholders but retained by the company for reinvestment or debt repayment.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

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