Resources Are a Source of Competitive Advantage Except When They

question 115

Multiple Choice

Resources are a source of competitive advantage except when they are

• A) valuable.
• B) rare.
• C) organized.
• D) easy to imitate.
• E) instrumental.

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Definitions:

Voting Stock

Shares that give the shareholder the right to vote on company matters, such as electing the board of directors.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Equity Methods

An accounting technique used for recording investments in associate companies where the investor has significant influence but does not have full control or majority ownership, typically implying ownership of 20% to 50% of the voting stock.

Voting Stock

Shares of a corporation that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.