Leonard Suggested That One of the Reasons Why Core Rigidities

question 30

Multiple Choice

Leonard suggested that one of the reasons why core rigidities are allowed to develop is:

• A)attacking core rigidities attacks the future economic viability of the organisation
• B)organisational routines easily become outmoded
• C)attacking current strategic capabilities attacks the current power structure
• D)habits arise from the cultural responsiveness of the workforce

---

Definitions:

Receivable Factoring

A financial transaction where a business sells its accounts receivable (invoices) to a third party (factor) at a discount, in order to obtain immediate cash.

Line Of Credit

A flexible loan from a bank or financial institution that has a maximum limit, allowing the borrower to access funds as needed up to the credit limit.

Short-Term Financial Plan

A strategy focusing on managing current liabilities and assets to meet short-term operational and financial goals.

External Financing

Funding acquired from sources outside the company, such as loans, stock issues, or bonds.