Which of the Following Statements Is True of a Strategic

question 107

Multiple Choice

Which of the following statements is true of a strategic position?

• A) Choosing a strategic position requires making important trade-offs between value and cost positions.
• B) Strategic positions are fixed; they do not change like the environment.
• C) Differentiation and cost leadership require similar strategic positions.
• D) A firm is said to have a competitive advantage when it ends up with strategic positions below the productivity frontier.

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Definitions:

Present Value

The modern-day value of a sum of money to be received in the future, adjusted for a specific rate of return.

Electricity Bill Savings

The reduction in the cost of electricity consumption, often achieved through energy-efficient practices or devices.

Asset Beta

A measure of the systematic risk of a firm's assets, used in the Capital Asset Pricing Model (CAPM) to determine the expected return of the asset.

Market Rate

Market rate, in economics, refers to the prevailing price of goods, services, or labor in a competitive market, determined by supply and demand dynamics.