Trust Machines Inc

question 125

Multiple Choice

Trust Machines Inc.is a company that manufactures and markets consumer electronics.The unique microprocessors developed by the company contribute to its high resource immobility.According to the resource-based view of competitive advantage, which of the following is an implication of this situation?

• A) The competitive advantage of Trust Machine Inc. will soon be lost.
• B) The resource heterogeneity of Trust Machine Inc. is low within the industry.
• C) The resources of Trust Machine Inc. are difficult to replicate or imitate.
• D) The environment in which Trust Machine Inc. operates is closest to perfect competition.

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Definitions:

Income Tax Expense

The total amount of income tax a company is required to pay to the government, reflected as an expense in its income statement.

Deferred Tax Asset Valuation Allowance

A contra-asset account used to decrease the value of deferred tax assets if it is more likely than not they will not be realized.

Income Manipulation

The practice of adjusting financial statements with the intention to mislead stakeholders about the company's financial performance or health.