A Company's Internal Strengths Should Always Serve as the Basis

question 141

Multiple Choice

A company's internal strengths should always serve as the basis of strategy because:

• A) placing heavy reliance on the company's best competitive assets is the soundest route to attracting customers and competing successfully against rivals.
• B) they represent what the company considers relevant despite the prevailing opportunities.
• C) they can overpower the impact of important external threats.
• D) they form the foundation of the firm's position in the marketplace.
• E) All of these.

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Definitions:

Incremental Sales

The additional revenue generated from a specific business action or decision, such as running a marketing campaign or launching a new product.

Cash Operating Expenses

Expenses that a company incurs during its day-to-day operations that require cash outflow.

After-Tax Discount Rate

The net discount rate that takes into account the tax implications affecting the net cost of investments or capital projects.

Working Capital

Working capital refers to the difference between a company's current assets and current liabilities. It is an indicator of a company's operational liquidity and short-term financial health.