The Biggest Difficulty in Understanding Capabilities Is

question 35

Multiple Choice

The biggest difficulty in understanding capabilities is:

• A)The conceptual distinction between resources and capabilities is unclear
• B)One cannot measure capabilities
• C)We don't understand all the links between resources and capabilities
• D)In practice many businesses don't use the concepts of resources and capabilities

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Definitions:

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee, typically involving adjusting the value of the investment over time to reflect shared profits or losses.

Equity Method

An accounting technique used to record investments in other companies, wherein the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee’s net assets and income.

Intra-Entity Inventory Sales

Transactions involving the sale of inventory items between divisions or departments within the same company.

Upstream

In the oil and gas industry, activities related to exploration and production of oil and natural gas.