1. "One of Banjo Company's greatest capabilities is their ability to consistently grow revenues year after year." Which of the following statements best explains why the above statement does not describe a firm capability?

A. The statement describes an outcome, not the capability that explains it.

B. The statement does not describe how this capability relates to their rivals' capabilities.

C. The statement is not unique to Banjo Company

2. Which of the following does NOT meet the definition of a resource?

A. A firm's network of distribution facilities

B. A firm's large product line

C. A firm's team of leading-edge R&D scientists