Based on the VRIO Framework,which of the Following Start-Up Companies

question 74

Multiple Choice

Based on the VRIO framework,which of the following start-up companies has the least potential to have a competitive advantage,to be profitable,and to grow?

• A)a cat-sitting service,where you take care of people's cats when they are on vacation;you decide to advertise your services on Craigslist and the local newspaper
• B)a "companionship" service for elderly people who live alone because their children are busy working full-time jobs;working adults say such a service would be extremely valuable
• C)the only farm within a 100-mile radius that offers its customers organic beef and organic dairy products such as eggs and milk;no other local company offers these products
• D)a portrait-painting service by a talented artist who is known for his ability to make all men look handsome and all women look beautiful;very few other artists in the local area have this talent
• E)an enrichment program for children that hires talented people and sends each of them to a different school each day of the week;a web-based app helps the manager keep track of all the employees' schedules and locations

---

Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.

Compensating Balances

A minimum account balance that a company agrees to maintain in a bank account to offset the cost of banking services provided.

Transactions Balance

The amount of money held to conduct transactions in the short term, usually reflecting the liquidity needs of an individual or a company.

Accounts Receivable

Liabilities of customers to a firm for items or services supplied, pending payment.