Traditional Resource-Based View

question 15

Multiple Choice

Traditional resource-based view:

• A)Overemphasizes leveraging existing resources/capabilities.
• B)Overemphasizes developing new resources/capabilities.
• C) Does not include an assessment of a firm's capabilities.
• D) Is primarily focused on a firm's tangible resources and capabilities.

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Definitions:

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated as the average annual return over the investment's life divided by the initial investment cost.

Straight-Line Depreciation

An arrangement for apportioning the financial burden of a physical investment throughout its active life in equal yearly disbursements.

Accounting Rate of Return

A financial ratio used to measure the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

After-Tax Net Income

The amount of money a company earns in a given period after all taxes have been deducted from gross income.