Knowledge Can Be a Real Competitive Advantage for an Organization

question 130

True/False

Knowledge can be a real competitive advantage for an organization. The most common form of collective intelligence found inside the organization is knowledge management (KM), which involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions.

---

Definitions:

Cost of Debt

The cost of debt is the effective rate that a company pays on its total debt, used in capital structuring decisions to evaluate the affordability of borrowing.

Dividend Growth Model

A model that estimates the value of a stock based on its expected dividends and their growth rate.

Retained Earnings

The portion of net earnings not paid out as dividends but reinvested in the business or kept as reserve.

Cost of Equity

The return a company theoretically pays to its equity investors, i.e., shareholders, to compensate them for the risk of investing in the stock.