BUS 345 - DOKTOR - QUIZ 4

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Under the accounting profitability framework to competitive advantage, comparing return on revenue (ROR) companies is important because: A. It adjusts for size differences and provides a relative comparison B. It reflects the firms' stock price C. It includes the value of the firm's intangible asset base D. All of these

A. It adjusts for size differences and provides a relative comparison Return or revenue is an important financial metric because it adjusts for size differences and provides a relative comparison

To __________ a stock return means to compare the percentage change of a stock price over the course of a certain time period from a common base year A. Normalize B. Standardize C. Regulate D. Stabilize

A. Normalize To normalize a stock means to compare the percentage change of a stock price over the course of a certain time period from a common base year when all stocks are set equal. The point is to compare stock price changes over a period. NOT the absolute value of the stock prices.

All of the following statements are TRUE about strategy EXCEPT: A. there is no single best strategy, only strategies that are better than that of rivals B. A strategy that has provided competitive advantages in the past will most likely do so in the future C. Strategy must integrate and align each business unit D. Performance metrics that measure effectiveness must aggregate upward and reflect overall company performance

B. A strategy that has provided competitive advantages in the past will most likely do so in the future Due to the transitory nature of competitive advantage, a strategy that has provided advantages to a firm in the past will most likely lose its competitive advantage power somewhere in the future

Value creation is important to competitive advantage because: A. The product or service that is valued the highest by the firm will deliver competitive advantage(s) B. The product or service that is valued the highest by the customer can charge the highest price C. The company with the highest future value will have highest profits D. The company with the highest present value will sustain competitive advantage(s)

B. The product or service that is valued the highest by the customer can charge the highest price Value creation is important to competitive advantage because the product or service that is valued the highest by the customer can claim the highest price

The triple bottom line is important to competitive advantage because: A. Social and ecological implications are important to firm performance B. Achieving the triple bottom line can lead to sustained competitive advantage(s) C. These dimensions are important to stakeholders D. All of these

D. All of these Social and ecological implications impact a firm's performance, are important to stakeholders, and can help a firm achieve sustained competitive advantage(s).


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