The Resource-Based View of the Firm

question 43

Multiple Choice

The resource-based view of the firm

• A)emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone.
• B)argues that the industry environment has a stronger influence on firms' ability to implement strategies successfully than does the competitor environment.
• C)calls for firms to focus on their homogeneous capabilities to compete against their rivals.
• D)suggests that vision and mission are closely linked to sustainable competitive advantage.

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Definitions:

Annually Compounded

An interest rate compound method where the calculation of interest is done once per year.

Loan Term

The duration of time over which a loan agreement is in effect, and by the end of which the loan should be repaid.

Compounded Annually

Occurs when interest is added to the principal sum of an investment or loan once per year, resulting in interest on interest.

Compounded Annually

Interest calculation method where interest is added to the principal once a year, leading to an exponential increase.