Business Concepts Overview

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What is the primary purpose of having capital resources according to the text?

To support critical business functions like marketing (correct)

To increase switching costs for customers

To invest in physical facilities only

To facilitate product differentiation

Which of the following is NOT mentioned as a requirement for having capital resources?

Physical facilities

Investments in inventories

Access to distribution channels (correct)

Marketing activities

What can be a result of lacking sufficient capital for a firm?

Decreased cost of production

Increased economies of scale

Inability to invest in marketing activities (correct)

Enhanced product differentiation

Which of the following is an example of a critical function that requires capital resources in addition to physical facilities?

Investing in inventories Signup and view all the answers

What could be a consequence of insufficient capital for a firm's ability to expand?

Limited ability to invest in new technologies Signup and view all the answers

How do capital requirements contribute to the growth of a firm?

By enabling investments in critical business functions Signup and view all the answers

Which factor makes resources valuable according to the text?

Allowing a firm to take advantage of opportunities Signup and view all the answers

What makes resources rare according to the text?

Being possessed by few current and potential competitors Signup and view all the answers

Why are resources considered costly to imitate according to the text?

Firms are at a cost disadvantage Signup and view all the answers

What does it mean when resources are nonsubstitutable according to the text?

They have structural equivalents Signup and view all the answers

What does the Resource-Based Model assume about organizations?

Organizations have unique resources and capabilities Signup and view all the answers

How are resources classified in general, based on the text?

As physical, human, and organizational capital Signup and view all the answers

What is the purpose of a firm's vision and mission?

To communicate what the firm is, what it seeks to achieve, and who it serves Signup and view all the answers

Who is primarily responsible for collaborating with others to establish a firm's vision?

The Chief Executive Officer (CEO) Signup and view all the answers

How does a vision statement differ from a mission statement in terms of focus?

Vision focuses on what the firm wants to become, while mission focuses on who it intends to serve Signup and view all the answers

What is the relationship between core competencies and capabilities in a firm?

Capabilities drive core competencies Signup and view all the answers

How should the formation of a firm's vision involve stakeholders?

Include a diverse group of stakeholders in crafting the vision Signup and view all the answers

Which element of a firm's identity is meant to capture the hearts and minds of employees and stakeholders?

Vision statement Signup and view all the answers

Business Concepts Overview

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