A Firm Always Has a Competitive Disadvantage When Its Return

question 24

Multiple Choice

A firm always has a competitive disadvantage when its return on invested capital is

• A) below the industry average.
• B) 2 percent or lower in a declining industry.
• C) about the same as its closest competitor.
• D) declining steadily over two or more years.

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Definitions:

Limitations

Legal restrictions, often related to the time within which legal proceedings must be initiated.

Parental Consent

Legal authorization that a parent or guardian gives for their child to participate in certain activities or to receive certain medical treatments.

Terminally Ill

A condition in which an individual is facing a disease or illness that is incurable and likely to lead to death.

Common Law Marriages

A legally recognized marriage without formal ceremony or license, based on the couple's cohabitation and presentation as married to the public.