Which of the Following Is Not a Good Example of a Company's

question 8

Multiple Choice

Which of the following is not a good example of a company's resources?

• A)Having a lower-cost value chain than key rivals
• B)Having a well-known brand name and enjoying the confidence of customers
• C)Having more intellectual capital and better e-commerce capabilities than key rivals
• D)Having higher earnings per share and a higher stock price than key rivals
• E)Having fruitful partnerships or alliances with suppliers that reduce costs and/or enhance product quality and performance

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Definitions:

Equity Method

An accounting technique used to record an investor’s proportional share of an associate company’s profits or losses on its financial statements.

Fair Value Enterprise Method

An approach to valuing a business by estimating the present value of foreseeable future earnings and the net asset value.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not have full control.

Dividends

A portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.