Over Time, a Change in the Basis of Competitive Advantage

question 102

True/False

Over time, a change in the basis of competitive advantage will cause advantage to shift from firms favored by industry conditions to those with obsolete resources and capabilities.

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Definitions:

Share Classes

Different types of stock in a company, each offering specific rights, dividends, or ownership values.

Required Rate Of Return

A rephrased definition: The minimum return investors expect from an investment, considering its risk level.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, often expressed as a percentage.

Expected Capital Gains Yield

The forecasted price appreciation on an investment or asset, typically expressed as an annual percentage.