Ori creates a living trust to pass his assets, including stock in petro oil company and other business investments, to his heirs. one advantage of this arrangement is that income taxes do not have to be paid on trust earnings. the assets are sheltered from the payment of estate taxes. the assets can be transferred without going through probate. the trust does not come into existence until the grantor's death.

Leading guitar string producer wound up inc. has enjoyed a competitive advantage based on its proprietary coating that gives its strings a clearer sound and longer lifespan than uncoated strings. one of wound up's competitors, however, has recently developed a similar coating using less expensive ingredients, which allows it to charge a lower price than wound up for similar-quality strings. wound up's competitive advantage is in danger due to a. a lack of perceived value b. a lack of organization c. direct imitation and substitution d. resource immobility