A Company's Proprietary Expertise - That Which Makes It Different

question 118

Multiple Choice

A company's proprietary expertise - that which makes it different from its competitors and helps to maintain its competitive advantage - can be discussed under the following theory:

• A)internalization or technological theory.
• B)Internalization or transaction cost theory.
• C)Internalization or regional cost theory.
• D)Internalization or transnational theory.
• E)Internalization or traditional cost theory.

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Definitions:

Equity Capital

Funds raised by a company through the sale of shares in return for ownership interest, without obligation to repay the investment.

Issuing Bonds

The act of a corporation or government raising capital by borrowing from investors through the sale of bond securities.

Reinvesting Earnings

The practice of using a company's profits to invest back into the business to fund growth, expansion, or improvements rather than distributing it to shareholders as dividends.

Strategic Plan

A document that outlines an organization's long-term goals and the strategies it will use to achieve them.