The Idea That Capabilities Result in Rigidities

question 53

Multiple Choice

The idea that capabilities result in rigidities:

• A)Is widely accepted
• B)Has withstood behaviorist attacks for half a century
• C)Has been challenged because some firms have the capability to be flexible
• D)Has been challenged because routines can be flexible, and some firms have the capability to quickly build new capabilities

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Definitions:

Accrual-based Net Income

Net income calculated under the accrual basis of accounting, recognizing revenues when earned and expenses when incurred, regardless of cash flow.

Domestic Corporations

Companies that are incorporated and operate within the legal jurisdiction of a specific country.

Accrual-based Net Income

The measure of an organization's earning power from ongoing operations, calculated by adding non-cash expenses and revenues booked but not paid to net income under cash accounting.

Domestic Corporations

Companies that are incorporated and operate within the country where they were formed.