The More a Resource Is Firm-Specific and Difficult to Imitate

question 41

True/False

The more a resource is firm-specific and difficult to imitate, the more likely a company holding that resource is said to have a distinctive competency.

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Definitions:

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset over a specified period.

Lease Liability

An obligation representing the present value of future lease payments that a lessee is committed to making under a lease agreement.

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Capitalized Lease

A lease arrangement that is recorded as an asset on the lessee's balance sheet, indicating that the lessee assumes some of the risks and benefits of ownership.