Because Firms Combine Tangible and Intangible Resources to Create Capabilities

question 115

Multiple Choice

Because firms combine tangible and intangible resources to create capabilities:

• A) these capabilities are fragile and subject to sudden loss of value.
• B) capabilities are often based on developing, carrying, and exchanging information and knowledge through the firm's human capital.
• C) capabilities are easily transferred from one firm to another as employees change jobs.
• D) these types of capabilities are considered primary activities in the value chain.

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Definitions:

Deflation

A decrease in the general price level of goods and services, often leading to increased purchasing power of money.

Real GDP

The measurement of a country's economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.

GDP

Gross Domestic Product, a measure of a country's economic output and performance, representing the total value of all goods and services produced over a specific time period.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to adjust GDP from nominal to real terms.