According to Barney's VRIO Framework,the Firm's Exploitation of a Competency

question 80

Multiple Choice

According to Barney's VRIO framework,the firm's exploitation of a competency pertains to

• A) value.
• B) rareness.
• C) imitability.
• D) organization.
• E) durability.

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Definitions:

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Discounted Cash Flow Analysis

A financial model used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.

Average Cost of Capital

A company's average cost of funds (both debt and equity), representing the return that investors expect for providing capital.

Profitability Index

A calculation used to assess the profitability and efficiency of an investment or project, computed as the present value of future cash flows divided by the initial investment cost.