Discuss and Explain the Three Criteria That a Core Competence

question 83

Essay

Discuss and explain the three criteria that a core competence must meet if it is to create value and to provide a viable basis for synergy among the businesses in a corporation.

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Definitions:

Separated-Entity Income Statements

Financial documents that detail the revenues, expenses, and net income of an entity as distinct from its owners or affiliated entities.

Entity Approach

A method in consolidated financial statements where the economic activities of a parent company and its subsidiaries are treated as a single economic entity.

Goodwill

An intangible asset originating from the acquisition of one company by another for a premium on the value, representing the reputation, brand, or other competitive advantages of the company.

Non-Controlling Interest

An ownership interest in a corporation where the stake does not grant the holder the control over the company's operations and policies.