MGT 498 Wk 2 – Practice: Ch. 5, Competitive Advantage, Firm Performance

Which of the following statements are true about the rival businesses Apple and Microsoft? (Check all that apply.)

Multiple select question.

Microsoft almost went bankrupt in late 1990s.

Apple’s primary business for several decades was to sell computers to corporations.

Microsoft leveraged its computer operating system to sell other software programs.

Apple introduced a series of popular consumer electronic devices.

Which of the following statements is true about a firm’s stock price?

Multiple choice question.

The price tends not to reflect accounting profitability.

The price determines in part the stock’s market valuation.

The price is not correlated with the firm’s economic value creation.

The price is calculated exactly from the firm’s accounting profitability.

Which of the following correctly describe the information used for comparing the performance of public companies based on accounting profitability?

Multiple select question.

The information must be purchased from private investment banks.

The relative performance is evaluated using standardized financial metrics.

The information is derived from such data as income statements and balance sheets.

The information is filed in a 10-K report.

The legal owners of publicly traded companies are called Blank______.

Multiple choice question.

executives

shareholders

business holders

stock brokers