A Core Competency Exists When an Organisation

question 103

Multiple Choice

A core competency exists when an organisation:

• A) makes large profits
• B) has a specific ability to generate value that none of its competitors can match
• C) has a short-term competitive advantage
• D) is able to outsource its services to other organisations
• E) is able to take advantage of a global opportunity.

Identify and calculate dividend growth rates based on plowback ratios and return on equity (ROE).

Understand the relationship between growth rates, required returns, and dividend payout ratios in valuing stocks.

Analyze and determine the impact of changing growth rates on stock valuation.

Application of valuation principles to preferred stocks.

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Definitions:

Customer Excellence

A strategic focus on delivering outstanding service and quality products that exceed customer expectations, often leading to high customer loyalty and satisfaction.

Ted's Tire Store

A specific retail store that specializes in selling tires and possibly related automotive services.

Retain Customer Loyalty

The strategies and efforts a business uses to keep its existing customers engaged and continue buying its products or services.

Go-To Brand

A brand that consumers prefer over others due to its reliability, quality, or emotional connection, making it their first choice.