Question

Which of the following statements accurately describes a firm's resource flow?

A.It is the firm's level of investments to maintain or build a resource.
B.It is the firm's current level of intangible resources.
C.It is the firm's current level of tangible resources that are common to other firms.
D.It is the firm's level of expertise to efficiently deploy a valuable resource

Answer 1

The statement that describes a firm's resource flow is "It is the firm's level of investments to maintain of build a resource."

We investigate whether firm-level investments in physical capital provide a potential pathway for less productive enterprises to enter export markets using firm-level data from two particular African nations. Our results show that non-exporters that invest in physical capital improve their likelihood of changing their status from non-exporter to exporter. We also show that firm-level investment is connected with higher productivity growth among exporters. As a result, we underline that firm-level investments in physical capital help non-exporters boost their chances of entering export markets and provide new exporters the chance to expand quickly and be around for a long time. Larger companies utilize more trade credit and have larger leverage ratios (both short- and long-term).

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