Examlex
Which of the following is least likely to provide a sustainable competitive advantage?
Investment in Bonds
Financial investments made by purchasing debt securities issued by corporations or governments, aiming to earn interest income.
Equity Method
An accounting technique used for recording investments in which the investor has significant influence over the investee but does not exercise full control.
Significant Influence
This term refers to the power to participate in the financial and/or operating policy decisions of another entity, but not control those policies. It is often quantified by owning 20% to 50% of the voting shares of the investee company.
Investee
The company whose stock is purchased by the investor.
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