The Resources and Capabilities That a Firm Possesses Are Called

question 26

Multiple Choice

The resources and capabilities that a firm possesses are called their ________.

• A) flow
• B) stock
• C) opportunities
• D) capital

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Definitions:

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.

Incremental Project Cash Flows

The additional cash inflows or outflows expected from undertaking a specific project, excluding any cash flows not directly attributable to the project itself.

NPV

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment, representing the difference between the present value of cash inflows and outflows.

IRR

A metric used in financial analysis to estimate the profitability of potential investments, it represents the annualized effective compounded return rate.