What is the definition of a resource?

• A. A capacity to perform internal activity
• B. A competitive asset owned or controlled by a company
• C. A cross-functional capability
• D. A social complexity factor

Answer: (B)

In strategy, a resource is an asset that a firm owns or controls and can use to implement its plans and create value. It can be tangible like cash, equipment, or buildings, or intangible like brand, patents, or a strong reputation. The defining idea is ownership or control and the ability to deploy the asset to gain an advantage.

That’s why the option describing a competitive asset owned or controlled by a company is the best fit: it clearly states an asset the firm owns or controls that can be leveraged for competitive benefit. The other descriptions point to capabilities (the ability to perform activities) or factors that aren’t assets owned by the firm (like a social complexity factor), which are different concepts from a resource.