Which of the Following Is a True Statement About Capabilities

question 29

Multiple Choice

Which of the following is a true statement about capabilities?

• A) Capabilities are often developed in specific functional areas such as manufacturing, R&D, and marketing.
• B) Valuable capabilities are based almost entirely on tangible resources.
• C) Capabilities based on human capital are more vulnerable to obsolescence than other intangible capabilities because of the tendency for employee knowledge to become outdated.
• D) The link between firm financial performance and capabilities is dependent on whether the capabilities are based on tangible or intangible resources.

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Definitions:

Profit

The right to go onto someone’s land and take part of the land or a product of it away from the land.

S Corporation

A special designation granted by the IRS to small businesses that allows them to pass corporate income, credits, and deductions through to shareholders, avoiding double taxation.

Taxed

Subjected to a financial charge or levy by a governmental organization in order to fund various public expenditures.

Partnership

A business arrangement recognized by law involving two or more partners who collectively oversee the business and divide its profits.