A Firm's Resources and Capabilities Are

question 31

Multiple Choice

A firm's resources and capabilities are:

• A)Such that one resource means one capability
• B)Associated but not linked
• C)Such that one capability may rest upon several resources
• D)Not directly related to each other at all

---

Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering the fixed costs.

Break-even Sales

The amount of revenue needed to cover both fixed and variable costs, resulting in no profit or loss.

Variable Cost

Costs that change in proportion to the level of goods or services produced, such as materials and labor directly involved in production.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the degree to which a company can increase profits by increasing sales.