A Company's Strategic Commitments

question 61

Multiple Choice

A company's strategic commitments

• A) allow it to imitate a competitor's advantage rapidly.
• B) are a way to avoid failure.
• C) occur when an organization is profitable.
• D) reduce inertia.
• E) allow it to develop a particular set of resources and capabilities.

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Definitions:

Absolute Advantage

The ability of an entity to produce more of a good or service with the same amount of resources than another entity.

Opportunity Cost

The price paid for not selecting the best available alternative when deciding.

Bushel

A unit of volume that is used primarily in the United States to measure agricultural commodities, equivalent to approximately 35.24 liters.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, enabling beneficial trade.