DECA+ Business Management and Administration Practice Exam 2026 - Free Business Management Practice Questions and Study Guide

Question: 1 / 400

What does competitive advantage refer to?

A unique feature of a product

The ability to produce goods at a lower cost

The favorable position a business has over its competitors

Competitive advantage refers to the favorable position a business holds over its competitors, allowing it to outperform them in the marketplace. This can manifest in various forms, such as superior quality, innovative product offerings, exceptional customer service, or stronger brand recognition. When a company possesses a competitive advantage, it can achieve higher sales, larger market share, and better profitability compared to competitors.

This concept is essential in strategic planning, as businesses continuously seek to identify and leverage their unique strengths to stay ahead in their industry. In contrast to other options, which address specific aspects of a product or operational efficiencies, competitive advantage encompasses a broader strategic positioning that influences overall market success.

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The market share of a company

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