The Difference Between a Resource and a Capability Is That

question 57

Multiple Choice

The difference between a resource and a capability is that

• A)a resource refers to a company's best-executed functional strategy and a capability refers to a company's best-executed business strategy.
• B)a resource refers to a company's most strategically important asset,whereas a capability refers to the basis of a company's competitive advantage over rivals.
• C)a resource is a competitively relevant internal activity that a firm performs especially well relative to other internal activities,whereas a capability is a competitively important activity performed by key strategic allies.
• D)a resource represents a competitive asset that is owned or controlled by the company,whereas a capability is a competently performed internal activity that is developed through the deployment of the company's resources.
• E)a resource usually resides in a company's technology and physical assets (state-of-the-art plants and equipment,attractive real estate locations,and so on),whereas a capability usually resides in a company's human capital,information capital,or organizational capital.

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Definitions:

Retained Earnings

Retained earnings are the portion of a company's profits that is kept or retained rather than being paid out as dividends to shareholders, often reinvested in the business or used to pay off debt.

Notes Payable

A financial liability representing a written promise to pay a specific sum of money on a specified future date.

Accounts Payable

A liability account that tracks money owed by a business to suppliers or creditors for goods and services received.