1. Essentially, strategy formulation boils down to answering two basic questions. What are these?

A. Where should we compete" and "How should we compete"

B. Why should we compete" and "How should we compete"

C. What is the meaning of life" and "Where should we compete"

D. How do we develop best-selling products" and "Where should we compete"

E. "Where should we compete" and "How do we imitate whatever the market leader is doing"

2. Competitive advantage is a key term when discussing strategy formulations. However, what does the term actually mean?

A. When firms have certain attributes allowing them to outperform their competitors

B. When firms have a tendency of failing in the market, but continuously strive to become better.

C. When firms have a larger market share than their competitors.

D. When firms have higher profit margins their competitors.