Resources and Capabilities Are Core Competencies Only When Their Use

question 38

Multiple Choice

Resources and capabilities are core competencies only when their use:

• A) leads to a competitive advantage for the firm.
• B) permits diffusion of threats in the external environment.
• C) provides opportunities to defeat competitors.
• D) encourages quick responses to changes in the global economy.

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Definitions:

Beginning Capital Balance

The beginning capital balance is the amount of capital or equity that a company has at the start of a new accounting period.

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, showing assets, liabilities, equity, revenue, and expenses.

Owner Withdrawals

Money or assets taken out of a business by the owner(s) for personal use.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership interest of shareholders or owners.