Elements That Derive from the Competitive Strategy and Are Essential

question 41

Multiple Choice

Elements that derive from the competitive strategy and are essential to the success of the organisation are called:

• A) key performance indicators.
• B) critical success factors.
• C) key performance factors.
• D) critical success drivers.

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Definitions:

Profitability Index Rule

A capital budgeting technique used to decide whether to invest in a project, calculated as the present value of future cash flows divided by the initial investment cost.

Capital Budgeting Technique

Methods used by companies to evaluate and select investments in long-term assets based on their potential to generate cash flows in the future.

Profitability Index

A financial metric used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment.

Payback Period

The duration required for an investment to generate cash flows sufficient to recover its initial cost.