The Resource-Based View (RBV)of the Firm Combines Two Perspectives

question 29

Multiple Choice

The resource-based view (RBV) of the firm combines two perspectives:

• A) the primary and support activities of the firm
• B) the interrelationships among the primary activities of the firm and corporate management
• C) the internal analysis of the firm and the external analysis of the industry and competitive environment
• D) the industry and the competitive environment

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income or profits.

After-Tax Discount Rate

The discount rate used in capital budgeting that accounts for the effects of income tax.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of a firm's shareholders' wealth maximization.

Straight-Line Depreciation

A way of assigning the cost of a tangible asset throughout its service life in even annual portions.