The Value of Doing Competitive Strength Assessment Is to

question 111

Multiple Choice

The value of doing competitive strength assessment is to

• A) determine how competitively powerful the company's core competencies are.
• B) learn if the company's market opportunities are better than those of its rivals.
• C) learn whether a company has a distinctive competence.
• D) learn how the company ranks relative to rivals on each of the important factors that determine market success and ascertain whether the company has a net competitive advantage or disadvantage vis-à-vis key rivals.
• E) determine whether a company's resource strengths are sufficient to allow it to earn bigger profits than rivals.

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Definitions:

Treasury Stock

Represents the portion of shares that a company keeps in its own treasury. These shares can be repurchased from the market and do not confer ownership rights.

Paid-In Capital

The amount of money that a company has received from shareholders in exchange for stock, over and above the par value of the shares.

Stockholders' Equity

Represents the ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.

Treasury Stock

Equities which were first released to the public by a company and later repurchased by the same company, thus diminishing the total number of shares accessible in the marketplace.