Discuss the three general approaches to developing competitive advantage:
What will be an ideal response?
a. Cost- or price-based competitive advantage. Firms must know the competitors' costs to be sure that they can compete on this basis by competitive matching price cuts. It is one of the most difficult approaches to competitive advantage.
b. Quality-based or differentiation advantage. This approach is a search for some points of difference that customers value and for which they are willing to pay a price premium.
c. Perceived quality or brand-based differentiation. Perceptual advantages are often used when actual product differences are small, hard to achieve, or difficult to sustain.
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Which of the following statements is true?
A) For a given change in market interest rates, the prices of higher-coupon bonds change more that the prices of lower-coupon bonds. B) If market interest rates rise, a 1-year bond will fall in value more than a 10-year bond. C) If interest rates rise, bond prices will rise. D) If market interest rates rise, a 10-year bond will fall in value more than a 1-year bond.
A repetition of processing and an accompanying comparison of individual results for equality is called
A) redundant processing. B) matching. C) run-to-run comparison. D) readback.