Which of the Following Advantages Is Most Likely to Be

question 82

Multiple Choice

Which of the following advantages is most likely to be enjoyed by a company as a part of the first-mover advantages?

• A)Increasing returns to specialization
• B)A positive-sum game due to lack of competition
• C)The ability to capture scale economies ahead of later entrants
• D)Absolute advantage and higher efficiency
• E)The ability to specialize in the production of a particular product

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Definitions:

Asset Management Ratios

Financial metrics used to assess how efficiently a company manages its assets to generate revenue, including turnover ratios for inventory, receivables, and fixed assets.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers for credit sales.

Inventory Turnover

A financial metric indicating how many times a company has sold and replaced its inventory over a specific period.

Quick Ratio

Current assets less inventories divided by current liabilities. A financial ratio that measures a firm’s liquidity, the ability to pay its bills in the short run, without depending on converting inventory into cash. Also called the Acid Test.