All of the Following Are Assumptions of the Resource-Based Model

question 121

Multiple Choice

All of the following are assumptions of the resource-based model EXCEPT:

• A) firms acquire different resources and develop unique capabilities based on how they combine and use resources.
• B) firms' performances across time are due primarily to their unique resources and capabilities rather than the industry's structural characteristics.
• C) resources and capabilities are highly mobile across firms.
• D) differences in resources and capabilities are the basis of competitive advantage.

---

Definitions:

Basis

The amount of investment in an asset for tax purposes, used to calculate gain or loss upon sale of the asset.

Related Party

Individuals or entities that have a close connection to a taxpayer that can affect financial transactions and tax reporting, such as family members or entities under common control.

Deductible

An expense that can be subtracted from income for tax purposes, reducing the taxable income.

Substantially Identical Stock

Stocks that are very similar to each other, the purchase of which can affect the tax treatment of sales for loss.