Asked by Isabella Pucci on May 20, 2024

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What opportunity is most likely to be created when proprietary or contractual advantage is the root of change?

A) Breakeven
B) Liquidity exit
C) Distributorship
D) Free cash flow

Proprietary Advantage

An edge a company gains by keeping its innovations, proprietary processes, or data secret to prevent others from copying or using them without permission.

Contractual Advantage

An upper hand or benefit a party has in a deal or agreement due to specific contract terms.

Distributorship

A business authorized to sell or distribute a company's goods or services in a specific area or market.

  • Understand the significance of value chain development and distribution channels in facilitating opportunity creation among various sectors.
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LK
Logan KetchumMay 23, 2024
Final Answer :
C
Explanation :
When proprietary or contractual advantage is the root of change, it often creates an opportunity for distributorship. This means that a company with the proprietary or contractual advantage may seek to partner with distributors who can help them reach a wider customer base and bring in more revenue. This can be a mutually beneficial arrangement, with the distributor benefiting from access to a high-demand or exclusive product or service. Breakeven and free cash flow are financial metrics that may be affected by the change, but they are not opportunities in and of themselves. A liquidity exit is a funding strategy typically used by venture capitalists or private equity firms to exit an investment, but it may not be directly related to a proprietary or contractual advantage.