The primary basis for a firm's capabilities is:
A)its ability to increase capacity as demand warrants
B)the amount of capital resources readily available
C)the good reputation it has built throughout its customer base
D)the skills and knowledge of its employees

Question

Quizplus · Accepted Answer

The skills and knowledge of a firm's employees are the primary basis for its capabilities. This includes their ability to innovate, problem-solve, and adapt to changes in the market. While having access to capital resources and a good reputation are also important, they are not as fundamental to a firm's capabilities as the skills and knowledge of its employees. Increasing capacity as demand warrants is also important, but this is more of a response to market conditions rather than a foundational capability.

The Primary Basis for a Firm's Capabilities Is