What Are Dynamic Capabilities

question 18

Multiple Choice

What are dynamic capabilities?

• A)The strategic capabilities that lead a business to change the world; the how and why a core business does what it does
• B)The primary steps in determining what type of capabilities you might need in your business
• C)Individuals who are successful when planning to start a business
• D)Entrepreneurs who have a dynamic personality

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Definitions:

External Benefits

Positive effects experienced by third parties or the broader society as a result of an economic transaction or activity that are not reflected in market prices.

Market Demand Curve

A graphical representation showing the relationship between the price of a good and the total quantity demanded by all consumers in the market.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often associated with public goods and services.

Free-Market Economy

An economic system where prices are determined by unrestricted competition between privately owned businesses without government intervention.