Question

A firm decides to retain $20,000 from its annual earnings and invest it in developing an advanced manufacturing system. According to the dynamic capabilities perspective, the $20,000 would most likely be referred to as the firm's:___________.

A. Capital gain
B. Frozen assets
C. Resource flow
D. Marginal utility

Answer 1

C. Resource flow

Step-by-step explanation:

Based on the information provided within the question it can be said that the $20,000 would most likely be referred to as the firm's Resource flow. This term refers to assets that enter the company and how those assets are ultimately spent. Which in this case the $20,000 was money (asset) retained from the company's annual earnings and used to develop an advanced manufacturing system. Thus the asset or resource flowed through different aspects of the company.