Which of the Following Is True

question 105

Multiple Choice

Which of the following is true?

• A)Core competency theory argues that an organization should outsource specific core assets.
• B)Core competency theory argues that an organization should focus exclusively on its core business competencies.
• C)Core competency theory argues that an organization should not outsource specific commodity assets.
• D)Core competency theory argues that an organization should retain certain specific noncore assets in-house.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including material and labor costs.

Income Statement

An income statement is a financial statement that reports a company's financial performance over a specific accounting period, detailing revenues and expenses to show net profit or loss.

Net Realizable Value

The estimated selling price of an item in the ordinary course of business minus any costs associated with the sale or disposal of the item.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may not be collectible.