The Condition That Exists When the Organization's Parts Interact to Produce

question 115

Multiple Choice

The condition that exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone is known as:

• A) core competence.
• B) synergy.
• C) value creation.
• D) business-level strategy.
• E) multidomestic strategy.

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Definitions:

Net Cash Outlays

Net cash outlays is a term used to describe the total cash expenditures a company makes, minus any cash inflows.

Additional Assets

Additional resources or properties acquired by a firm or individual which can be utilized for generating revenue or held as an investment.

Incremental Cash Flow

The additional cash flow generated by a company from undertaking a new project or making a business decision, used to analyze the profitability of that decision.

Taxes

Taxes are compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.