🎓CFA Final Prep All Topics

Corporate Issuer Features and Public vs

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Question

What does a firm's sustainability of competitive advantage indicate when analyzing its business model?

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Answer

How well its revenue stream is protected.

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Question

Why do brand, patents, network effects, and switching costs matter in business-model analysis?

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Answer

They help protect the firm's revenue stream.

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Question

Why is scalability valuable in a business model?

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Answer

It allows growth without proportional cost increases.

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Question

How does pricing power affect the attractiveness of a business model?

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Answer

It lets the firm raise prices without losing customers.

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