A Capability of the Firm Is NOT Considered to Be

question 120

Multiple Choice

A capability of the firm is NOT considered to be

• A) the capacity of a firm to competently perform some internal activity.
• B) referred to as a competence.
• C) developed and enabled through the deployment of a company's resources or some combination of its resources.
• D) a competitively valuable resource.
• E) related to the level of resources available.

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Definitions:

Net Book Value

The value of an asset after accounting for depreciation or amortization found on a company's balance sheet.

Operating Expense

Expenses incurred from a company's operational activities, excluding cost of goods sold, such as selling, general, and administrative expenses.

Minimum Required Rate of Return

The lowest acceptable return on investment for a project or investment, often determined by the cost of capital or desired profit.

Gross Margin

The variance between the revenue generated from sales and the cost incurred from goods sold, calculated as a fraction of the sales revenue.