Exam 5: Competitive Advantage, Firm Performance, and Business Models

________ is best described as the difference between a buyer's willingness to pay for a product or service and a firm's total cost to produce it.

Which of the following is a disadvantage of the balanced-scorecard approach?

The tenet behind the triple-bottom-line is that

Which of the following statements is true of accounting data?

What are the drawbacks of using total return to shareholders and firm market capitalization to measure firm performance?

What pricing options does a firm have when the difference between V, the consumer's willingness to pay, and C, the cost to produce the good or service, is large?

Aguilar Industries has produced a new piece of technology that will monitor the soil moisture in a user's garden and send a notification to an app on the user's phone when it is time to water their plants. The goal of this inexpensive technology is to entice users to purchase Aguilar's more expensive automated watering system, so that they can trigger the watering process from the app on their phones. Which business model is most likely to help Aguilar Industries accomplish its goals?

The balanced-scorecard can accommodate

Which of the following statements about competitive advantage is true?

Which of the following is an advantage of applying the economic value creation perspective to assess a firm's performance?

The ratio of SG&A/Revenue is an indicator of a firm's focus on

The Lynx Manufacturing Company produces components used in electronic toys. In fiscal year 2017, Lynx earned an accounting profit of $3 million. However, Lynx's production facilities might have also been used to produce components for mobile phones, which would have generated $2 million in revenues and saved the company $500,000 in production costs. Which of the following statements is true?

A defining characteristic of the pay-as-you-go business model is that the

What are the advantages of the balanced scorecard?

Competitive advantage goes to the firm that achieves the

A high percentage of R&D/Revenue ratio indicates a(n)

Which of the following competitively important assets is typically excluded from a firm's balance sheet?

Which of the following is an advantage of the balanced-scorecard?

You are the founder of Shadow Skateboards, and you are considering methods of gaining and sustaining a competitive advantage. Which of the following changes has the best chance of quickly creating a sustainable advantage?

Rock Bottom Tiles has developed a new customer-oriented business model. Rather than maintain a network of showrooms across the country, the business will now let customers choose several styles that interest them from an online site, and will ship samples of each of the styles to the customer to test in their home free of charge. Once they have settled on a tile choice, Rock Bottom will send a representative to their home to schedule installation. The company has determined that busy middle-class customers will value the convenience of the new model, which allow them to upgrade the look of their homes without spending time browsing showrooms. The new model will be created by selling the old showrooms and shifting resources to the new online site and regional offices for sales personnel. What question remains for Rock Bottom to ask in order to put its strategy into action?