A Core Competence

question 9

Multiple Choice

A core competence:

• A) retracts from a company's arsenal of competitive capabilities and competitive assets and is not a resource strength considered to be genuine.
• B) is typically results-based,residing in a company's tangible physical assets on the balance sheet.
• C) is often grounded in a single department's set of knowledge and expertise.
• D) is an activity that a firm performs proficiently that is also central to its strategy and competitive success.
• E) All of these.

Understand the importance of cash discounts in the decision to offer credit.

Comprehend how changes in credit terms affect the cost of credit for customers.

Recognize the terms used in credit management such as receivables period and inventory turnover.

Understand the methodologies for analyzing the creditworthiness of potential customers.

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Definitions:

Irrational Decisions

Choices made contrary to or without consideration of the available evidence or logic.

Anchoring

A cognitive bias where an individual relies too heavily on an initial piece of information (the "anchor") to make subsequent judgments.

Behavioral Economists

Researchers and experts who study the psychological, social, cognitive, and emotional factors influencing economic decisions and behaviors of individuals and institutions.

Recently Considered Information

Pertains to the latest data or findings that have been taken into account in a particular context or analysis.