Which of the Following Conditions Must Be Met If a Firm's

question 2

Multiple Choice

Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage? 

• A) ​The resources must be cheap, common, and substitutable. 
• B) ​The resources must be fixed assets, such as machinery, buildings, and land. 
• C) ​The resources must be current assets, such as inventory. 
• D) ​The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable.

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Definitions:

Economic Resources

Assets, natural resources, labor, and capital that can be used for the production of goods and services, fundamental to economic activity.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period of time.

Economic Performance

A measurement of how well an economy, sector, or company is performing in terms of income, output, and growth.

Stockholders' Equity

The portion of a company's assets that belongs to the shareholders, calculated as the difference between total assets and liabilities.