Which Statement About the Dynamic Perspective Is True

question 94

Multiple Choice

Which statement about the dynamic perspective is true?

• A) A firm's market position tends to remain relatively stable over time.
• B) The current market position of a firm is not an accurate predictor of its future performance.
• C) Competitive advantage is determined by the structure of the industry.
• D) Competitive advantage is determined by industry attractiveness.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Prepayments

Payments made in advance for goods or services, which are recorded as assets on the balance sheet until the corresponding goods or services are received.

Unearned Revenue

Money received by an entity for a service or product yet to be delivered or performed.

Adjusting Entry

A journal entry made in accounting records to update the balances of accounts at the end of an accounting period before financial statements are prepared.