A Creative,distinctive Strategy That Sets a Company Apart from Its

question 49

Multiple Choice

A creative,distinctive strategy that sets a company apart from its rivals and that gives it a sustainable competitive advantage

• A)is a reliable indicator that the company has a profitable business model.
• B)is a company's most reliable ticket to above-average profitability.
• C)signals that the company has a bold,ambitious strategic intent that places the achievement of strategic objectives ahead of the achievement of financial objectives.
• D)is the best indicator that the company's strategy and business model are well matched and properly synchronized.
• E)allows a company's managers to ignore competitors' responses to any moves that the company might make.

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Definitions:

Income Statement

A financial statement that provides a summary of a company's revenues, expenses, and profits over a specific period, indicating financial performance.

Net Operating Income

A company's income after operating expenses are subtracted but before deducting interest and taxes.

Break-even Sales

refers to the amount of revenue needed to cover all fixed and variable costs, at which point a business neither makes a profit nor incurs a loss.

Absorption Costing

A technique in accounting that rolls all manufacturing expenses including direct material costs, direct labor, and every overhead, regardless if fixed or variable, into the overall cost of a product.