As noted in Chapter 5,Microsoft is many times larger than Google and records higher net income,return on assets,and return on equity in absolute terms when it comes to accounting profitability.However,when looking at normalized stock returns,Google has outperformed both Microsoft and the NASDAQ-100 index by a wide margin over the 2005-2010 time period.Suppose you were a manager for Microsoft.Evaluating this information would tell you that:
A) Microsoft has a sustained competitive advantage from a shareholder value creation framework.
B) Google has a sustained competitive advantage from a shareholder value creation framework.
C) Both Microsoft and Google have sustained competitive advantages from a shareholder value creation framework.
D) Google has a competitive disadvantage from a shareholder value creation framework.
Correct Answer:
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