Question

Establishing a sustainable competitive advantage is the key to ________ performance.

1) short-term market
2) short-term financial
3) short-term employee
4) long-term employee
5) long-term financial

Answer 1

To ensure long-term financial performance, a company must establish a sustainable competitive advantage by investing in human capital, technology, and physical plant and equipment.

Step-by-step explanation:

Establishing a sustainable competitive advantage is the key to long-term financial performance. By focusing on sustainability, companies ensure that their practices can be maintained indefinitely, which is essential for success over the long-term. Investment in human capital, technology, and physical plant and equipment, along with creating a stable and market-oriented economic climate, are critical to achieving and maintaining a competitive edge. It's not just about immediate profit, but rather about building a robust business model that can withstand market fluctuations and evolve over time.