1. True or False Some capital investments may require several years of outlays before they begin to generate cash inflows.
2. True or False Trend analysis is a form of sales forecasting where potential customers are studied.
3. True or False Competitive markets usually have identical products, and identical cost and one very large producer (with market power)
4. True or False An uninformed customer can be a source of competitive advantage and economic profits.
5. True or False A competitive advantage that last for a short period of time is more valuable than the same competitive advantage that is sustained for a long period of time.
6. True or False Growth without competitive advantage (and a negative NPV) can actually decrease the wealth of the firm.
7. True or False For some products an economic profit may be earned because the customers are less price sensitive (like medical services).
8. True or False Distribution can be a feature that companies use to differentiation their products to improve their chances of establishing a competitive advantage and earning economic profits.
9. True or False Arbitrage insures that equal cash flows (of equal risk) sell at equal rates of return and unequal cash flows (of equal risk) sell at equal prices once arbitrage has worked to adjust the prices.
10. True or False The NPV is a measure of risk not wealth.