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

True Machine Inc.and One Electrona Inc.are two competing consumer electronics companies.While True Machine's COGS/Revenue is 66%, One Electrona's is 74%.What do you infer from this financial data?

Which of the following best expresses fixed asset turnover?

Which of the following scenarios best illustrates crowdsourcing?

The working capital of a small home-based business is $200,000.The revenues generated account to $600,000, and the profits incurred are $300,000.What would be the company's working capital turnover?

Master's Health Club, a chain of gyms and spas, requires its customers to pay a quarterly or an annual fee to use its services.Irrespective of whether they frequently use the services during the payment period or not, members have to pay in advance.Which of the following business models does this best illustrate?

The tenet behind the triple bottom line is that:

How does the triple-bottom line approach help managers?

_____ are the legal owners of public companies.

The cost of capital to create a product is a fixed cost because it is:

At present, _____ make up the oldest cohort of the workforce.

How does consumer demand affect fixed costs and variable costs?

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

When GD Inc.declared a dividend of $20,000,000, its market value increased from $8 billion to $8.5 billion.However, it lost a chance to reinvest $20,000,000 in the research and development of a new product which would have earned a profit of $200 million.Thus, this $200 million is referred to as GD Inc.'s _____.

Red Ink Electronics Inc.faced a serious technical problem when developing a microprocessor for a high-tech medical device.The employees of the company including those in the research and development department were unable to solve the issue.Thus, an open call was made to the general public, mainly technicians and product engineers, on the company's website to volunteer to solve the technical problem the company faced.Which of the following does the scenario best illustrate?

Which of the following is an advantage of a triple-bottom line approach?

In order to achieve a competitive advantage, a firm should be able to:

_____ is best described as a process in which a group of people voluntarily performs tasks that were traditionally completed by a firm's employees.

How does a sustainable strategy typically help a firm?

The value a consumer attaches to a product or service is captured in the:

What is the significance of the Cost of goods sold/Revenue ratio?