Core Competencies Are Built Through the Interplay of Several Firm

question 79

Multiple Choice

Core competencies are built through the interplay of several firm attributes.These attributes include a firm's:

• A) Resources, capabilities and activities.
• B) Size, age and demographics.
• C) Investments, industry and political climate.
• D) All of these

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Definitions:

Margin of Safety

The difference between actual or expected sales and the break-even point, indicating the amount by which sales can drop before a company incurs losses.

Break-Even Sales

The amount of revenue required to cover total fixed and variable expenses during a specific period, resulting in no profit or loss.

Current Sales

The total sales revenue that a company generates in the present or most recent accounting period.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in sales volume, indicating the degree of fixed versus variable costs.