In Order for a Company to Achieve a Sustainable Competitive

question 37

Multiple Choice

In order for a company to achieve a sustainable competitive advantage, it must:

• A) perform one or more activities in the value chain at the same quality level as its competitors.
• B) perform all activities in the value chain at the same quality level as its competitors.
• C) perform its value chain activities at a higher quality level than one of its competitors.
• D) two of the answers are correct.

---

Definitions:

Voting Rights

The right of shareholders to vote on corporate matters, typically exercised during annual general meetings.

Common Stock

Equity securities representing ownership shares in a corporation, with voting rights and potential dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Preemptive Right

The right of the stockholder to purchase additional shares of stock to maintain a proportionate interest when the corporation issues additional stock.