Describe the Four Specific Criteria That Managers Can Use to Decide

question 50

Essay

Describe the four specific criteria that managers can use to decide which of their firm's capabilities have the potential to create a sustainable competitive advantage.

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Definitions:

Capital Account Balance

The amount of money in a company's or individual's capital account, indicating the net investment in the entity at a specific point in time.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue, indicating the company's financial performance over a specific period.

Withdrawals

Funds or resources withdrawn from a company by its owner(s) for private purposes.

Capital Balances

The amounts recorded in a company's capital accounts, reflecting the net investment of owners or partners.