For a Particular Company Resource/capability to Have Real Competitive Power

question 61

Multiple Choice

For a particular company resource/capability to have real competitive power and perhaps qualify as a basis for competitive advantage,it should

• A) be hard for competitors to copy, be rare and something rivals lack, be competitively valuable, and not be easily trumped by substitute resource strengths possessed by rivals.
• B) be something that a company does internally rather than in collaborative arrangements with outsiders.
• C) be patentable.
• D) be an industry key success factor and occupy a prime position in the company's value chain.
• E) have the potential for lowering the firm's unit costs.

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Definitions:

Uncollectible Accounts

Accounts receivable that are recognized as unlikely to be collected, leading to their write-off as bad debts.

Bad Debt Expense

An expense reported on the income statement, reflecting the cost of credit sales that are not expected to be collected.

Terms 2/10 N/30

A common payment term in business indicating that a buyer can take a 2% discount on the invoice price if payment is made within 10 days; otherwise, the full invoice price is due in 30 days.

Merchandise Returns

Goods returned by the buyer to the seller, often due to defects, dissatisfaction, or other reasons, leading to a reversal of the sale.