All Except One of the Following Are Key Questions for Identifying

question 48

Multiple Choice

All except one of the following are key questions for identifying core competencies:

• A) Does the identified skill set contribute significantly to what the customer perceives as the organization's value-added?
• B) Does the business derive most of its revenue based on products or services that exhibit the core competency?
• C) Is the business particularly good as the skill set?
• D) Is the skill set broad enough that it allows the opportunity to enter many diverse markets or businesses?

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Definitions:

EAC Methodology

The Equivalent Annual Cost method, used to compare the economic cost of projects with different lifespans by converting their costs into an equivalent annual amount.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, typically aimed at achieving a specific goal.

Equivalent Annual Cost

A financial analysis tool used to compare the cost effectiveness of two or more projects with differing lifespans, by calculating the annual cost of each.

Sunk Cost

A cost that has already been incurred and cannot be recovered.