Competitive Intensity Will Increase When All of the Following Happen

question 63

Multiple Choice

Competitive intensity will increase when all of the following happen EXCEPT:

• A) Proprietary technology is a core capability.
• B) Rivals are similar in size and capability.
• C) Buyers switching costs are low.
• D) Exit barriers are high.

Calculate and analyze residual income.

Understand the concept of minimum required rate of return.

Evaluate investment opportunities in terms of residual income and ROI.

Assess the impact of new investments on overall company performance.

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Definitions:

Uniform Commercial Code

A thorough aggregation of legal provisions steering all commercial operations throughout the United States.

Common Law

A legal system based on precedents and judicial decisions rather than statutory laws.

Lessee

An individual or entity who leases an asset from another, the lessor, under the terms of a lease agreement.

Possession and Use

The act of holding property and utilizing it, which may imply certain rights or obligations under the law.