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Researchers Hamel and Prahalad defined the term core __________________ to mean something that a firm can do well and that provides customer benefits,is hard for competitors to imitate,and that can be leveraged widely to many products and markets.
Degree of Operating Leverage
A financial metric that measures the sensitivity of a company's operating income to changes in its sales, highlighting the effect of fixed costs on profits.
Conventional Cash Flows
Conventional cash flows involve an initial outlay followed by a series of positive cash inflows, typically seen in standard investment scenarios.
Marginal Cost
The additional cost incurred in producing one more unit of a product or service, critical for making production decisions.
Contribution Margin
The contribution margin represents the portion of sales revenue that is not consumed by variable costs and is available to cover fixed costs, contributing to profit.
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