Which of the Following Is a True Statement About Capabilities

question 29

Multiple Choice

Which of the following is a true statement about capabilities?

• A) Capabilities are often developed in specific functional areas such as manufacturing, R&D, and marketing.
• B) Valuable capabilities are based almost entirely on tangible resources.
• C) Capabilities based on human capital are more vulnerable to obsolescence than other intangible capabilities because of the tendency for employee knowledge to become outdated.
• D) The link between firm financial performance and capabilities is dependent on whether the capabilities are based on tangible or intangible resources.

---

Definitions:

Market Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that all consumers in a market are willing to purchase at each price level.

Price Elasticity

The degree to which the demand or supply of a product or service changes in response to a change in price, indicating the sensitivity of consumers or producers to price variations.

Total Expenditure

The aggregate amount spent by consumers on a particular good or service over a specified time period.

Price Elasticity

The quantification of demand elasticity for a product relative to the shifts in its price.