How Does Possessing a Core Competence Help a Firm

question 9

Multiple Choice

How does possessing a core competence help a firm?

• A)It helps a firm to create value in such a way that premium pricing is impossible.
• B)It reduces a firm's dependence on its logistics function.
• C)It enables a firm to reduce the costs of value creation.
• D)It reduces the scope of transfer of skills to foreign markets.
• E)It reduces the need to replicate a business model in a foreign market.

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Definitions:

Perpetual Inventory Systems

Inventory accounting method that continuously tracks inventory levels and updates accounting records for each purchase and sale.

Inventory Records

Inventory records are detailed lists or databases that track the quantities, locations, and statuses of products or materials that a company holds in stock.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of the materials and labor directly used to create the product.

Gross Profit

A company's revenue minus its cost of goods sold, indicating the efficiency of a company in managing its production and labor costs.