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Glossary

A

Advantaged Brands

When a brand shows above average Economic Profit.

Advantaged Market

When a market shows above average or positive Economic Profit.

B

Base Case

The value of a business with its existing ownership and strategies before it is acquired.

C

Cadbury

Confectionery company.

Capital charge

A monetary amount, calculated by multiplying the money the business has tied up in capital, by the weighted average cost of capital (WACC). Capital charge is deducted from net operating profit after tax to arrive at Economic Profit.

CEO

Chief Executive Officer

Competitive Advantage

The benefit for consumers and/or customers which competitors may find difficult or uneconomic to replicate.

CSD

Carbonated Soft Drink

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