What Term Describes a Framework Used in Strategy Based on Resource

question 20

Multiple Choice

What term describes a framework used in strategy based on resource heterogeneity which posits that for a competitive advantage to be sustainable,it must be underpinned by resource capabilities that are scarce and imperfectly mobile?

• A)Persistence of profitability for the firm
• B)Capability-based theory of the firm
• C)Regression to the mean
• D)Resource-based theory of the firm
• E)Five-forces framework

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping manage liquidity and cash reserves.

Direct Labor Budget

An estimate of the total amount of labor cost that will be needed to produce the products a company plans to manufacture in a specific period.

Variable Manufacturing Overhead

Indirect manufacturing costs that fluctuate with production volume, such as utility costs for running production equipment.

Fixed Manufacturing Overhead

The total of all production costs that do not change with the level of output, including salaries, rent, and insurance.