When Considering the VRIO Model, Understanding How Many Competing Firms

question 25

Multiple Choice

When considering the VRIO model, understanding how many competing firms possess specific, valuable resources and capabilities answers the question of

• A) value
• B) rareness
• C) inimitability
• D) organization

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Definitions:

Fair Market Value

The price at which property would sell under usual market conditions, reflecting its value when both buyer and seller are reasonably knowledgeable and willing.

Self-dealing

Conduct by a fiduciary or a person in a position of trust that involves taking advantage of their position for personal gain at the expense of those to whom they owe a duty.

Agent

An individual or entity authorized to act on behalf of another person or entity, known as the principal, in transactions or legal matters.

Fiduciary Duty

The legal obligation of one party to act in the best interest of another party, such as the responsibility of a trustee to safeguard the interests of the beneficiaries.