According to Alfred Chandler

question 37

Multiple Choice

According to Alfred Chandler,

• A) high-tech industries cannot be defined by "paths of learning" if they want to evolve.
• B) companies spring from an individual entrepreneur's knowledge, which is composed exclusively of technical skills.
• C) once a corporation has built its learning base to the point where it has become a core company in its industry, entrepreneurial start-ups are rarely able to successfully enter.
• D) learned capabilities derive from organizational strengths.
• E) organizational knowledge can seldom be a competitive advantage.

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Definitions:

Payback Period

The duration of time it takes to recoup the cost of an investment.

Straight-Line Method

A depreciation method that allocates the cost of an asset evenly over its useful life.

Gross Revenues

The total amount of sales revenue generated by a company before any deductions are made for returns, allowances, and discounts.

Payback Method

A capital budgeting method that calculates the time needed to recoup the initial investment in a project, based on the project's expected cash flows.