The Competitive Power of a Company's Resource Strength Is Not

question 43

Multiple Choice

The competitive power of a company's resource strength is not measured by which one of the following tests?

• A)Is the resource rare and something rivals lack?
• B)Is the resource strength something that a company has internally rather than in collaborative arrangements with outsiders?
• C)Is the resource strength easily trumped by the substitute resources/capabilities of rivals?
• D)Is the resource strength hard to copy?
• E)Is the resource strength competitively valuable, having the potential to contribute to a competitive advantage?

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Definitions:

Operating Activities Section

A part of the cash flow statement that shows the cash inflows and outflows resulting from the company's primary business activities.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and signifies a claim on part of the corporation's assets and earnings.

Operating Activities

The day-to-day activities of a company involved in producing and selling its products or providing services, which generate most of the company's cashflows.

Indirect Method

A technique used in cash flow statements to adjust net income for non-cash transactions, depreciation, and changes in working capital.