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The Functions That a Company Can Perform as Well as or Better

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The functions that a company can perform as well as or better than anyone else in the world are known as that firm's optimized capabilities.


Definitions:

Marginal Tax Rate

The rate of tax imposed on your income, corresponding to each applicable tax bracket.

Average Tax Rate

Total taxes paid divided by total taxable income.

Net Working Capital

The difference between a company’s current assets and current liabilities, indicating the liquidity of the business.

Statement of Comprehensive Income

A financial report detailing all equity adjustments for a period, excluding those changes stemming from owner investments and payouts to owners.

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