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:

Batches

Batches refer to groups or sets of goods produced at one time, used in manufacturing to describe the production process or in inventory to describe how products are managed.

Product Margins

The difference between the selling price of a product and its production costs.

Activity Rates

The costs associated with specific activities, used in activity-based costing to allocate expenses to products or services based on the activities required for their production or delivery.

Activity Cost Pools

A grouping of all the costs related to a particular activity used in activity-based costing for more accurate allocation of overhead costs.