For a Core Competency to Create Value and Provide a Viable

question 64

True/False

For a core competency to create value and provide a viable basis for synergy among the businesses in a corporation,it must at least create superior customer value and it must be difficult to imitate.

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Definitions:

Vertical Analysis

An approach to analyzing financial statements where every item within the three primary account categories (assets, liabilities, and equity) on a balance sheet is shown as a percentage of the total category.

Total Liabilities

The combined total of all current and long-term financial obligations owed by an entity at any given time.

Common-Sized Income Statement

An income statement in which each line item is expressed as a percentage of sales, facilitating the comparison across different periods or companies.

Net Income

The final profit of a company calculated by deducting all expenses and taxes from its revenue.