Source of sustainable competitive advantage

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Reference no: EM132178294

1. A resource or capability that has led to sustainable competitive advantage for a firm has the following characteristic(s):

A. It is hard to imitate

B. Managers are aware of and taking advantage of the potential of the resource or capability

C. It is unique

D. It is valuable

E. All of the above

2. Which of the following is most likely to be a source of sustainable competitive advantage?

A. A state-of-the art machine that a firm purchases from a supplier

B. A new product

C. A research and development process

D. A unique plant design

E. A new service

3. Which ratio measures a firm’s liquidity?

A. Debt-to-equity

B. Current

C. Return-on-assets

D. Asset turnover

E. None of these

4. Which ratio measures a firm’s leverage?

A. Debt-to-equity

B. Current

C. Return-on-assets

D. Asset turnover

E. None of these

5. Which group of stakeholders has, as its primary function, protecting the interests of the stockholders?

A. Managers

B. Employees

C. Board of directors

D. Unions

E. Customers

Reference no: EM132178294

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