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

TravelCheap Inc.is a car rental business that charges customers based on how many miles they put on a car on a daily basis.As result,a person who uses a car to travel from Chicago to Denver during a week is charged much more than a person who uses a car only to travel one mile to the grocery store six times a week.TravelCheap uses a business model called

Which of the following scenarios best illustrates bundling?

In 2014,Apple had a return on revenue of 29.3 percent,and Microsoft had a return on revenue of 32 percent.Even so,Apple had a higher return on invested capital than Microsoft.Why did this happen?

_____ most precisely measures how well a company leverages its fixed assets,particularly property,plant,and equipment (PPE).

_____ is a business model in which the manufacturer sets a fixed price on a product,but the retailer is to free set its own price.

Hugo Books Inc.is a retailer that buys books at a fixed price from publishers.Recently,Hugo offered a deal in which customers could buy a package of three mystery books at a discounted rate.Which of the following business models has Hugo Books combined?

A firm incurs $100 to manufacture an office table.It fixes the market price of the table as $250,and discounts the price to $200.However,the maximum a person is willing to pay for it is $180.What is the amount of total perceived consumer benefits in this scenario?

_____ is best described as a measure of how effectively capital is being used by a firm to generate revenue.

Which of the following is not a factor that makes total return to shareholders and market capitalization unreliable measures of company performance?

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

Which of the following questions challenges managers to come up with strategic objectives that ensure future competitiveness?

Which of the following is not true of risk capital?

A defining characteristic of the subscription-based business model is that the

The tenet behind the triple-bottom-line is that

Mia has purchased an Internet package for three months,in which she can use 30 mbps Internet speed.However,for the service,she needs to pay a fee of $50 in advance irrespective of whether she uses the Internet during the service period or not.This arrangement best illustrates the _____ strategy.

Smart Feet Inc.produces shoes that are better quality and cost more to make than the shoes of its competitors.Smart Feet realizes that there will be a large difference between the cost to produce the shoes and the consumer's willingness to pay for them.Even so,Smart Feet decides to charge the same price as its competitors.Which of the following will most likely be the result of this action?

_____ 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 the most accurate characterization of stakeholder theory?

Janet is the CEO of Far Sight Inc.,which uses a triple-bottom-line approach.As a result,Janet will tend to

The receivables turnover of VK Products Inc.is 13.6 and that of its competitor DL Goods Inc.is 6.0.What does this financial data primarily imply?