The Benefits of Retaining a Core Competency Within a Company

question 43

Multiple Choice

The benefits of retaining a core competency within a company and purposefully threading that core competency through the value chain are referred to as ________ advantages.

• A)internalization
• B)domestic
• C)location
• D)ownership

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Definitions:

Realized Gain

The profit earned from the sale of an asset when the sale price exceeds the purchase price, which has become actual rather than just theoretical.

Fair Market Values

The estimated price at which a property or asset would trade in a competitive auction setting.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Bonds Payable

A liability account that records the amounts a company owes to holders of its issued bonds, to be repaid at a specified maturity date.