Which of the Following Statements Fails to Bring Out the Essence

question 62

Multiple Choice

Which of the following statements fails to bring out the essence of the dynamic capabilities perspective?

• A) A firm's competitive advantage is derived from static resource or market advantages.
• B) A firm must be able to change its resource base as the external environment changes in order to sustain its competitive advantage.
• C) A firm should modify its core competencies to effectively compete in dynamic markets.
• D) A firm's external environment is rarely stable, and in many industries, change is fast and ferocious.

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Definitions:

Water Pollution

The contamination of water bodies (e.g., lakes, rivers, oceans, aquifers) with pollutants that degrade water quality and ecosystem health.

Investing Activities

Part of the cash flow statement that shows the cash spent on and generated from long-term asset operations and investments.

Long-Term Investments

Investments in stocks, bonds, or other assets that a company intends to hold for more than one fiscal year.

Interest Revenue

Income earned from lending money or investing in interest-bearing financial instruments.