Which of the Following Represents a Reason Why Competitive Advantages

question 3

Multiple Choice

Which of the following represents a reason why competitive advantages are typically temporary?

• A) The competitor will hire away your key employees.
• B) The competitor quickly seeks ways to duplicate your business operations.
• C) The competitor will purchase new technology.
• D) All of these choices

---

Definitions:

Contingent Liability

A potential financial obligation that may arise in the future depending on the outcome of a specific event.

Reasonably Possible

A term used in accounting and law to indicate that a future event or condition has a chance of occurring.

Liability

A company's financial debt or obligations that arise during the course of its business operations.

Probable Loss

An estimated loss from a contingent liability that is likely to occur and can be reasonably estimated.