The Scoop,Ltd.is a magazine publishing company whose average return on invested capital is approximately 5 percent.Because magazine publishing is a declining industry,the industry average has been negative (-5 percent)for the last few years.In this scenario,The Scoop Ltd.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.