All of the Following Are True Concerning the Importance of Dynamic

question 77

Multiple Choice

All of the following are true concerning the importance of dynamic capabilities to a firm EXCEPT:

• A) A firm is unable to create rare resources unless it is dynamic.
• B) The firm must be able to change its resource base and activity systems when the external environment changes.
• C) The firm must be able to modify, upgrade and reconfigure its resources as needed.
• D) Possessing dynamic resource capabilities helps the firm to sustain competitive advantage(s) over time.

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Definitions:

Current Receivables

Short-term financial assets that are due to be received within one year, typically from customers who owe the company money for goods or services provided.

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Quick Assets

Highly liquid assets that can be quickly converted into cash without losing value, often including cash, marketable securities, and accounts receivable.

Current Assets

Items of value that are likely to be turned into cash, sold off, or used up within the span of one year or the length of the operating cycle, whichever period extends further.