A Dynamic Capability Is the

question 14

Multiple Choice

A dynamic capability is the

• A)ongoing capacity to modify existing resources and capabilities to create new ones.
• B)improvement evaluation process for eliminating waste in the firm.
• C)functional and operating resources management process.
• D)ongoing capability to understand and establish a rival commitment to resource alignment.
• E)most compelling product or service in a firm.

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Definitions:

Liquidity Ratios

Financial ratios used to measure a firm’s ability to meet its short-term obligations to creditors as they come due.

Short-term Obligations

Financial liabilities that are due within one year, typically including accounts payable, short-term loans, and other debts.

Creditors

Individuals or institutions that lend money or extend credit to others and are owed repayment in the future.

Pro Forma Financial Statement

Financial reports that project the future income, assets, and liabilities of a company, often used in planning and decision-making.