Question

Which of the following is a true statement about capabilities?

a. Capabilities are often developed in specific functional areas such as manufacturing, R&D, and marketing..
b. Valuable capabilities are based almost entirely on tangible resources.
c. Capabilities based on human capital are more vulnerable to obsolescence than other intangible capabilities because of the tendency for employee knowledge to become outdated.
d. The link between firm financial performance and capabilities is dependent on whether the capabilities are based on tangible or intangible resources.

Answer 1

Capabilities are often developed in specific functional areas such as manufacturing, R&D, and marketing.

Step-by-step explanation:

The statement that is true about capabilities is option a. Capabilities are often developed in specific functional areas such as manufacturing, R&D, and marketing. This is because capabilities refer to the skills, knowledge, and resources that an organization possesses to perform specific tasks or activities efficiently and effectively. These capabilities are often developed and cultivated in different functional areas of the organization depending on their focus and expertise.