Which One of the Following Is an Accurate Interpretation of the Scores

question 105

Multiple Choice

Which one of the following is an accurate interpretation of the scores that result from doing a competitive strength assessment?

• A) High scores signal a strong competitive position and possession of a competitive advantage over companies with lower scores.
• B) High scores indicate that a company is a power-user of best practices,while low scores signal minimal or ineffective adoption of best practices.
• C) The company with the lowest score has the lowest-cost value chain.
• D) The company with the lowest score has the strongest net competitive advantage over its rivals.
• E) High scores indicate which rivals are most vulnerable to competitive attack.

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Definitions:

Revised Model Business

A business model that has been updated or adjusted to reflect changes in the market, technology, or company strategy.

Owners' Equity

Owners' equity represents the residual interest in the assets of a company after deducting liabilities, often referred to as shareholders' equity.

Legal Distributions

Payments made by a company to its shareholders or owners as declared in its corporate charter or bylaws and approved by regulators.

Book Value

Represents the value of an asset according to its balance sheet account balance, taking into account the cost of the asset and any depreciation or amortization.