If a Company Wants to Gain a Competitive Advantage in a Highly

question 94

Multiple Choice

If a company wants to gain a competitive advantage in a highly competitive industry, it should ideally

• A) execute an integrated cost-leadership and differentiation position.
• B) copy the strategies of other firms through competitive benchmarking.
• C) provide goods or services similar to its competitors at higher prices.
• D) stake out a unique position within the industry.

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Definitions:

Trade Credit

A financial agreement in which a customer is allowed to purchase goods or services and pay the supplier at a later scheduled date, effectively extending interest-free credit.

Current Liabilities

Short-term financial obligations a company is required to pay within one year or within the normal operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively a company uses invested funds to generate profit.