Under the shareholder value creation approach to measuring competitive advantage,profitability and stock price increases indicate:
A) That investors are ignoring macroeconomic factors.
B) That the firm is most likely at competitive parity with its rivals.
C) That investors will get a poor return on their risk capital.
D) That a firm is utilizing effective strategies.

Question

Quizplus · Accepted Answer

Effective strategies to grow the business can increase a firm's profitability and thus its stock price.

Under the Shareholder Value Creation Approach to Measuring Competitive Advantage,profitability