Most Firms Have a Resource Base That Is Composed Primarily

question 44

Multiple Choice

Most firms have a resource base that is composed primarily of resources and capabilities that are

• A) valuable but not rare.
• B) neither valuable nor rare.
• C) valuable and rare.
• D) rare but not valuable.

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Definitions:

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts.

Average Total Assets

The average value of all assets owned by a company over a period, typically calculated by combining the beginning and ending values for a period and dividing by two.

Asset Turnover

A ratio that determines the competence of an organization in using its assets to generate income from sales.

Book Value

The net value of a company's assets minus its liabilities, often used to assess its equity value.