Because Capabilities Are Often Client-Specific And/or Based on the Firm's

question 52

Multiple Choice

Because capabilities are often client-specific and/or based on the firm's human capital,

• A) capabilities are fragile and subject to sudden loss of value.
• B) they often evolve and develop over time.
• C) capabilities are easily transferred from one firm to another as employees change jobs.
• D) these types of capabilities are considered primary activities in the value chain.

---

Definitions:

Laws and Ethics

The principles and regulations governing conduct in both a legal and moral framework, often guiding professional practice and corporate behavior.

Moral Principles

Fundamental beliefs about what is right, wrong, good, or bad that guide an individual's actions and decisions.

Enforceable

Capable of being imposed or upheld by legal process or authority, ensuring compliance with laws, regulations, or agreements.

Laws

The system of rules that are created and enforced through social or governmental institutions to regulate behavior.