New Communications Inc.is a newspaper publishing company whose average return on invested capital is approximately 5 percent.Because newspaper publishing is a declining industry, the industry average has been negative (-5 percent)for the last few years.In this scenario, New Communications Inc.has a _____.
A) competitive advantage
B) balanced scorecard
C) competitive disadvantage
D) power position

Question

Quizplus · Accepted Answer

If a firm's return on invested capital is 5 percent in a declining industry such as newspaper publishing, where the industry average has been negative (-5 percent) for the last few years, then the firm has a competitive advantage.