Theories of how to gain competitive advantage in an industry that emerge over time or that have been radically reshaped once they are initially implemented are known as correct answers emergent strategies
Which type of ratios focus on the ability of a firm to meet its short-term financial obliga...
Capstone/MGMT 4312 Exam 1 || A Verified A+ Pass.
Theories of how to gain competitive advantage in an industry that emerge over time or that have
been radically reshaped once they are initially implemented are known as correct answers
emergent strategies
Which type of ratios focus on the ability of a firm to meet its short-term financial obligations?
correct answers liquidity ratios
Firms that generate less economic value than their rivals experience a competitive correct
answers disadvantage
Accounts receivable turnover is an example of which type of ratio? correct answers Activity
From 1926 to 1995, visionary firms earned __ returns compared to firms that were not visionary
firms. correct answers substantially higher
A firm's __ is a measure of its competitive advantage calculated using information from a firm's
published profit and loss and balance sheet statements correct answers Accounting performance
Thermacorp's weighted average cost of capital is 13.5. If the average WACC in the heating and
cooling industry is 19, Thermacorp can be said to be earning correct answers Below normal
economic performance
Actions firms take to gain competitive advantages in a single market or industry are known as
correct answers business level strategies.
A sequential set of analyses and choices that can increase the likelihood that a firm will choose a
strategy that generates competitive advantages is the correct answers strategic management
process.
________ occurs when a firm adopts organizational policies and practices that are consistent
with its strategy. correct answers Strategy implementation
An important limitation of comparing a firm's performance to its cost of capital occurs when a
firm is correct answers privately held.
The percentage of a firm's total capital that is debt times the cost of debt plus the percentage of a
firm's total capital; or equity times the cost of equity is the correct answers weighted average cost
of capital.
Which of the following statements regarding firm mission is accurate? correct answers While
some firms have used their missions to develop strategies that create significant competitive
advantages, firm missions can hurt a firm's performance as well.
Thermacorp's 17.3% ROE is an example of a(n) ________ ratio. correct answers profitability
, By conducting a(n) ________, a firm identifies the critical threats and opportunities in its
competitive environment. correct answers external analysis
________ costs exist when customers make investments in order to use a firm's particular
products or services. correct answers Customer-switching
Mature industries are characterized by correct answers a slowdown in the introduction of new
products or services.
All of the following are elements of the general environment except correct answers industrial
trends.
The values, beliefs and norms that guide behavior in a society are known as correct answers
culture.
When activity in an economy is relatively low for a short period of time, the economy is said to
be in a correct answers recession.
In a perfectly competitive industry, correct answers it is not very costly for firms to enter or exit
the industry.
________ are advantages that come to firms that make important strategic and technological
decisions early in the development of an industry. correct answers First-mover advantages
BidBuy is the world's leading online auction company. When BidBuy was founded ten years ago
it was the first online auction company, and it has been the leader since it was founded. Although
there are other firms in the industry, BidBuy controls over 75% of the market in the United
States, and three additional firms control another 20% of the U.S. market. One of the aspects of
BidBuy that keeps users from changing to other online auction companies is the large user base
BidBuy has built and a feedback rating system that allows buyers and sellers to rate their
satisfaction with each other following each transaction. This allows users to build a reputation
for honesty and trustworthiness. Sellers with a high feedback rating tend to receive more bids on
their auctions and a higher price for their goods. To help facilitate payment transfers between
buyers and sellers following successful online auctions, companies such a correct answers
oligopoly
A(n) ________ is any individual, group, or organization outside a firm that seeks to reduce the
level of that firm's performance. correct answers environmental threat
Frequent price cutting by firms in an industry, frequent introduction of new products by firms in
an industry and intense advertising campaigns are indications of correct answers high levels of
direct competition.
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