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

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?

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

Which of the following approaches to assess competitive advantage is based on the view that noneconomic factors can have a significant impact on a firm's financial performance?

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

After trying on a dress,a consumer assesses it to be worth a maximum of $100 and is willing to pay that amount for the dress.However,the dress was priced at $80.What is the amount,$100,referred to as?

Which of the following statements is true of the balanced-scorecard?

Nicki paid $900 for a camera that she thought was worth $1100 for all the features included in it.For the consumer electronics firm selling the camera,however,the cost of producing the camera was only $350.What is the consumer surplus in this scenario?

Manufacturers of electric fragrance diffusers sell the electric outer device at an extremely low price,sometimes even at a loss.However,they make their money on the product by charging a premium on the perfume refills that have to be replaced regularly.Which of the following business models does this best illustrate?

Kerry the Kangaroo Inc.specializes in producing and selling a stuffed kangaroo named Kerry.Although the stuffed kangaroo has sold well,the clothes that can be bought to dress the kangaroo have not sold as well as expected.As a result,Kerry the Kangaroo has warehouses full of hats,pants,sweaters,and shoes to dress Kerry.This firm used a _____ to determine how much of its capital is tied up in these accessory items.

Unlike the financial ratios based on accounting data,total return to shareholders is

Jenny liked a pair of sapphire earrings and thought they would cost around $1,000.She was surprised to find that the price of the earrings was $1,500.However,she decided to buy the earrings anyway.This scenario describes

Using the _____ approach,managers audit their company's fulfillment of its social and ecological obligations to stakeholders such as employees,customers,suppliers,and communities as conscientiously as they track its financial performance.

A firm incurs $400 to manufacture a television.In the market,customers are willing to pay a maximum of $600 for the television priced at $500.The difference of $200 ($600 minus $400)is the

Which of the following statements about competitive advantage is true?

_____,which is the return on risk capital,includes stock price appreciation plus dividends received over a specific period.

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

In the freemium business model,the

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

True Vibgyor Inc.sells its e-book readers at the cost price of $15 each.However,the company makes its profits when users have to download or buy books online.Which of the following business models is True Vibgyor implementing?

A watchmaking company has priced one of its wristwatches at $210.Most of its competitors sell similar watches at $180.Selling anything less than $150 would result in a loss for the company.However,the absolute maximum a customer is willing to pay for it is $170.In this scenario,what is the reservation price of the wristwatch?