A drawback to evaluating competitive advantage under the shareholder valuation perspective is:
A) The effectiveness of a firm's strategy cannot be reflected in its stock price.
B) It is not as effective as the accounting profitability approach to measuring competitive advantage.
C) The psychological mood of investors does not necessarily reflect how effective a firm's strategy actually is.
D) It is the only "one-dimensional" framework that does not compare the firm to its rivals.

Question

Quizplus · Accepted Answer

The psychological mood of investors does not necessarily reflect how effective a firm's strategy actually is when measuring competitive advantage.

A Drawback to Evaluating Competitive Advantage Under the Shareholder Valuation