Sizing Up a Company's Overall Resource Strengths and Weaknesses

question 13

Multiple Choice

Sizing up a company's overall resource strengths and weaknesses

• A)essentially involves constructing a strategic balance sheet on which the company's resource strengths represent competitive assets and its resource weaknesses represent competitive liabilities.
• B)is the same process as benchmarking.
• C)is called competitive strength assessment.
• D)is focused on making lists of a company's resource strengths and weaknesses.
• E)is called company resource mapping.

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Definitions:

Levered Investment

Levered Investment involves using borrowed funds in addition to one's own investment capital to enhance the potential return of an investment.

Long Stock Position

The ownership of shares in a company with the expectation that they will increase in value over time.

Russell 2000

An index measuring the performance of approximately 2000 small-cap companies in the United States.

Large-cap Indexes

Large-cap Indexes track the performance of stocks from companies with large market capitalization, reflecting the overall health and trends of major corporations.