Building Dynamic Capabilities and Core Competencies

question 14

Multiple Choice

Building dynamic capabilities and core competencies

• A) is best and most cost-effectively accomplished by forming alliances with outsiders.
• B) generally requires recalibration of existing ones and adding new capabilities and competencies when necessary.
• C) entails developing more breadth and depth in a company's knowledge base and stock of intellectual capital than rivals have.
• D) can be done quickest by creating a new department and assigning it the task of imitating the desired capabilities that one or more rivals (or even companies outside the industry) have already developed.
• E) entails hiring a cadre of people with the right talent and expertise and letting them lead the effort to establish a strong corporate culture that features the desired competence or capability.

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Definitions:

Journal

A log where every financial transaction is first recorded in the order of occurrence.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including loans, bonds payable, and accounts payable.

Ledger

A book or other collection of financial accounts of a particular type, where transactions are recorded.

Normal Balances

The side (debit or credit) of an account that is increased, reflecting the account's natural balance.