The Ability to Buy Capabilities Depends On

question 61

Multiple Choice

The ability to buy capabilities depends on:

• A)Their transferability between firms
• B)Their transferability between firms and the size of transaction costs
• C)The time needed to accumulate knowledge about this capability
• D)The cost of capabilities on external factor markets

Understand the significance of the risk-free rate and market rate of return in investment decisions.

Ability to analyze cash flow streams to make informed investment decisions.

Understand the concept of updating production technology and its potential impact on a company's cash flows.

Knowledge of evaluating investment decisions based on present value and discount rates.