Core Competence Is the Plan of Action That Prescribes Resource

question 148

True/False

Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the environment.

---

Definitions:

External Financing

Describes the funds a business acquires from sources outside the company, such as bank loans, venture capital, or issuing bonds and stocks to support operations or expansion.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and profits without increasing its financial leverage or debt.

Net Income

Represents the company's total earnings, reflecting the company's profit after all costs and taxes have been subtracted from revenues.

Cash Dividends Paid

The total amount of cash distributed by a company to its shareholders as dividends during a specific period.