Strategic Management- Chapter 5
What is true of accounting data?
Accounting data are historical and thus backward-looking.
How does a sustainable strategy typically help a firm?
It helps the firm achieve positive results along the social and ecological dimensions.
_______ is the benefit that is missed or given up when an investor, individual or business chooses one alternative over another.
Opportunity cost
________ are the legal owners of public companies.
Shareholders
What framework used to measure competitive advantage relies on both an internal and external view of the firm?
The balanced-scorecard model
The market capitalization of a public company is $5 billion. Each share of the company is traded at $200. What do you infer from this financial data?
The firm's number of outstanding shares is 25 million.
A firm incurs $400 to manufacture a computer. In the market, customers are willing to pay a maximum of $600 for the computer priced at $500. The difference of $200 ($600 minus $400) is the __________.
economic value created
The ratio COGs/ Revenue indicates how efficiently a company can ______.
produce a good
The type of assets that are the primary focus of accounting data but are no longer most important to competitive advantage are ________.
tangible
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