Capabilities That Other Firms Cannot Develop Easily Are Classified As

question 25

Multiple Choice

Capabilities that other firms cannot develop easily are classified as:

• A) costly to imitate.
• B) rare.
• C) valuable.
• D) nonsubstitutable.

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Definitions:

Money Markets

Financial markets focused on short-term borrowing and lending with maturities of less than one year, dealing in instruments like Treasury bills and commercial paper.

Short-Term Debt

Borrowings that are due to be paid back within a short period, typically less than one year.

Long-Term Equities

Investment securities that represent ownership in a company or corporation and are held for a period longer than one year.

Maturity Matching

A financial strategy that entails matching the duration of assets and liabilities to minimize risk associated with cash flow mismatches.