A firm's resources and capabilities:
A) are always core competencies.
B) may be a source of incompetence.
C) are all a firm needs to focus on.
D) are inherited,not created.

Question

Quizplus · Accepted Answer

A firm's resources and capabilities may become outdated or inadequate over time, leading to incompetence. Therefore, it is crucial for a firm to constantly assess and adapt these resources and capabilities to stay competitive. Option A is incorrect as not all resources and capabilities may be core competencies. Option C is incorrect as a firm must also consider external factors such as market trends and competition. Option D is incorrect as a firm can create new resources and capabilities through innovation and strategic planning.

A Firm's Resources and Capabilities