Division of large corporation is presenting financial result

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Reference no: EM131437078

1. A division of a large corporation is presenting its financial results for the year to the board of directors for the parent company. The company has achieved a competitive advantage and would like to report on its profitability. Which of these financial results provides the best indicator of the company's success?

a. Net Sales of $350 million

b. Invested capital of $18 million

c. 65% cost of goods sold

d. 20% return on invested capital

2. A company's rare and valuable process knowledge elements can be hard to copy because they are often unwritten, spread among many team members and kept secret within the firm. This is an example of:

a. poorly organized inventory.

b. causal ambiguity.

c. organizational architecture.

d. scarcity.

3. A firm can develop its competitive advantage through its resources. Resources include:

a. both the physical elements of production, such as machines and workforce, as well as the knowledge and expertise for how to make and sell a product or service.

b. only inputs that are bought and sold on the open market at fair and reasonable prices.

c. the competitors within an industry who seek to serve the same group of customers and serve the same customers' needs.

d. the customers who choose to buy products or services from a company.

Reference no: EM131437078

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