The Assumptions of the Industrial Organization Model and the Resource-Based

question 39

True/False

The assumptions of the industrial organization model and the resource-based model are contradictory.Therefore, organizational strategists must choose one or the other model as the basis for developing a strategic plan.

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Definitions:

Numerically Controlled

Pertaining to machines or processes that are operated by precise instructions coded in the form of numbers.

Simple Rate

Refers to a basic or straightforward percentage that does not involve compounding over time, typically in finance.

Salvage Value

Salvage value is the estimated residual value of an asset after it has reached the end of its useful life and is no longer useful for its original purpose.

Payback Period

The period of time needed to recover the initial cost of an investment.