Absorptive Capacity

question 10

Multiple Choice

Absorptive capacity

• A) is the result of effective strategic decisions by a firm's upper management.
• B) increases a firm's future ability to assimilate information.
• C) is an essential component of a learning organization.
• D) is inversely proportionate to the size of the organization.

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Definitions:

Trade-off

The compromise between two conflicting desires or choices, where achieving more of one thing requires giving up something else in return.

Peanuts

Often used informally to refer to a very small or insignificant amount of money.

Cashews

A type of nut known for its rich flavor and health benefits, often used in cooking and snacking.

Rate Of Trade-off

The rate at which one factor must be decreased to increase another factor while keeping overall utility constant, often used in economics to describe opportunity costs.