Chapter 4 Quiz-1

Strengths that cannot be easily matched or imitated by competitors are called what?
A.
Synergies
B.
Valuable resources
C.
Distinctive advantages
D.
Distinctive competencies
E.
Competitive advantages

D.
Distinctive competencies

Which of the following statements is false?

A.
The resource-based view approach to competitive advantage contends that internal resources
are more important for a firm than external factors in achieving and sustaining competitive
advantage.
B.
In contrast to the Industrial Organization (I/O) theory presented in the previous chapter,
proponents of the RBV view/theory contend that organizational performance is primarily
determined by internal resources.
C.
Resource-based view theory asserts that resources are actually what helps a firm exploit
opportunities and neutralize threats. As indicated in the Academic Research Capsule 4-1, RBV
theory may be helpful in identifying diversification targets.
D.
Empirical research by Neffke reveals that it is the nature of a firm's human capital, more than
any other variable in the firm's value chain, that impacts that firm's choice of diversification
targets. Specifically, firms select acquisition targets that offer opportunities to leverage existing
human resources.
E.
A through D are true statements.

E.
A through D are true statements.