If a Venture Activity Does Not Involve a Core Competency

question 6

Multiple Choice

If a venture activity does not involve a core competency, then you should consider

• A) growing the competency.
• B) outsourcing the competency.
• C) deleting the competency.
• D) None of the above.

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Definitions:

Gross Profit

The difference between total revenue and the cost of goods sold, before deducting any selling, administrative, or other expenses.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overheads, salaries, and other operating expenses.

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities.

Nonoperating Items

Income and expenses that are not related to the core operations of a business, such as gains or losses from investments or interest expense.