Globus Exam 1: Chapter 5 100% SURE
2024
What two things must you do in order to accurately measure competitive advantage? -CORRECT ANS-1.
Accurately assess firm performance
2. Compare and benchmark the focal firms performance to other competitors in the same industry
Define Total return to shareholders -CORRECT ANS-is an external performance metric and indicates how
the market views all publicly available information about a firms past, current state, and future.
What three components are critical to evaluating any good or service? -CORRECT ANS-(V) value
(P) Price
(C) Cost
What is Economic value? -CORRECT ANS-the difference between a buyers willingness to pay for a good
or service and the firms cost to produce it (V-C)
What four key questions are answered by manager when developing strategic objectives for the balance
score cards? -CORRECT ANS-1. How do customers view us
2. How do we create value?
3. What core competencies do we need?
4. How do shareholders view us?
What three dimensions make up the triple bottom line -CORRECT ANS-It is the consideration of more
than just economics to also include the environment and equity (social affect on humans).
2024
What two things must you do in order to accurately measure competitive advantage? -CORRECT ANS-1.
Accurately assess firm performance
2. Compare and benchmark the focal firms performance to other competitors in the same industry
Define Total return to shareholders -CORRECT ANS-is an external performance metric and indicates how
the market views all publicly available information about a firms past, current state, and future.
What three components are critical to evaluating any good or service? -CORRECT ANS-(V) value
(P) Price
(C) Cost
What is Economic value? -CORRECT ANS-the difference between a buyers willingness to pay for a good
or service and the firms cost to produce it (V-C)
What four key questions are answered by manager when developing strategic objectives for the balance
score cards? -CORRECT ANS-1. How do customers view us
2. How do we create value?
3. What core competencies do we need?
4. How do shareholders view us?
What three dimensions make up the triple bottom line -CORRECT ANS-It is the consideration of more
than just economics to also include the environment and equity (social affect on humans).
