What Is the Underlying Premise of the Resource-Based View

question 58

Multiple Choice

What is the underlying premise of the resource-based view?

• A) Firms generally have very similar capabilities stemming from almost identical resources
• B) Imitation of resources is the best way to achieve competitive advantages
• C) Firms differ in fundamental ways because each firm possesses a unique bundle of resources
• D) Firms' intangible resources can be very difficult to imitate

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Definitions:

Direct Payments

Cash subsidies paid to farmers based on past production levels; a permanent transfer payment unaffected by current crop prices and current production.

Marketing Loans

Loans provided to agricultural producers, typically by a government, using the harvested crops as collateral, allowing farmers to hold their products for higher future prices.

Absolute Increases

Refers to outright growth in a specific numerical value, such as income, over a period, without adjustments for factors like inflation.

Relative Increases

Comparisons of growth or expansion in different areas or items, measured in proportionate terms rather than absolute numbers.