Which of the Following Terms Best Describes the Ability of a Firm

question 9

Multiple Choice

Which of the following terms best describes the ability of a firm to maintain and adapt the capabilities that are the basis of its competitive advantage?

• A)Riskiness of R&D
• B)Correlated research strategies
• C)Evolutionary economics
• D)Dynamic efficiency
• E)Dynamic capabilities

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Definitions:

Straight-Line Method

A method of calculating depreciation by evenly allocating the cost of an asset over its useful life.

Semiannual Amortization

The process of periodically reducing the value of a debt or an intangible asset over two times in a year.

Issuing Corporation

A company that has issued securities through an initial public offering (IPO) and has its shares bought and sold by investors.

Discount

A reduction applied to the normal selling price of goods or services, often used as an incentive to increase sales or clear inventory.