According to Michael Porter,_____ and _____ Are the Two Basic

question 49

Multiple Choice

According to Michael Porter,_____ and _____ are the two basic strategies for improving creating value and attaining a competitive advantage in an industry.

• A) differentiation; low-cost
• B) value creation; generalization
• C) one-size-fits-all; zero-sum
• D) comparison; standardization
• E) profitability; strategic fit

Understand the advantages of using return on investment (ROI) and residual income as performance measures.

Learn about the components of return on investment (ROI) and how they provide a comprehensive view of divisional performance.

Analyze the calculation and significance of investment turnover in evaluating performance.

Understand the purpose and method of allocating indirect operating expenses to departments.

---

Definitions:

Genetic and Environmental Factors

Elements that contribute to the development and characteristics of organisms, including inherited genes from parents and conditions of the environment in which the organism lives.

Phenotype

The observable characteristics of a person, including appearance, personality, intelligence, and all other traits.

Genotype

An organism’s entire genetic inheritance, or genetic potential.

Differentiate

To recognize or ascertain what makes someone or something different or to distinguish between two or more things.