At the heart of a business strategy must be a clear idea of how profits will be generated - not just some profits, but profits above the firm's cost of capital.

Question

Quizplus · Accepted Answer

A business strategy must indeed focus on generating profits that exceed the firm's cost of capital, as this indicates the firm is creating value beyond its operational costs and investments, ensuring long-term sustainability and growth.

At the Heart of a Business Strategy Must Be a Clear