Exam 2 (Chapters 3, 4, 5)

_____ are barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy.

Isolating mechanisms

Which of the following expressions accurately describes market cap?

It is the product of the number of outstanding shares and the share price.

_____ describes a process in which the options one faces in a current situation are limited by decisions made in the past. Question 6 options:

Path dependence

Which of the following statements accurately describes a firm's resource stock?

Resource stocks are a firm's current level of intangible resources.

________ precisely indicates how much of a firm's sales is converted into profits.

Return on revenue

Which of the following approaches to assess competitive advantage is based on the view that noneconomic factors can have a significant impact on a firm's financial performance?

The triple-bottom-line approach

Which of the following describes a situation in which firms acquire resources at a low cost, laying the foundation for a competitive advantage later?

better expectations of future resource value

The translation of strategy into action primarily takes place in a firm's

business model.

Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as

capabilities.

The value a consumer attaches to a product or service is captured in the

consumer's maximum willingness to pay for it.

A resource-based view of a firm provides a model that systematically aids in identifying

core competencies.

Competitive advantage goes to the firm that achieves the

largest economic value created.

According to the value chain analysis, which of the following is a primary activity?

marketing and sales

The competitive advantage that one firm has will be short-lived in an industry in which

perfect competition exists.

The difference between the price charged for a product and the cost to manufacture it is referred to as the

producer surplus.

Due to resource immobility, a critical assumption in the resource-based model of a firm, the

resource differences between firms last for a long time.

________ are the legal owners of public companies.

shareholders

Dynamic capabilities are especially relevant for surviving and competing in markets that

shift quickly

A defining characteristic of the subscription-based business model is that the

user pays for access to a product or service whether he or she uses it during the payment term or not.

A defining characteristic of the pay-as-you-go business model is that the

users pay for only the services they consume.