Which concept is developed and enabled through deployment of a company's resources?

• A. Resource
• B. Resource bundle
• C. A cross-functional capability
• D. Competence

Answer: (D)

The idea being tested is that a firm’s ability to act—its competence—emerges when it effectively deploys and coordinates its resources to perform tasks. Resources are the inputs a company owns (assets, skills, processes, knowledge). Merely possessing resources or grouping them into a bundle doesn’t by itself create the ability to execute activities well. When those resources are integrated and put to work through routines and coordinated actions, they develop into a lasting capability—the competence to perform a set of activities effectively and consistently, often across contexts.

A cross-functional capability is a specific type of capability that spans multiple functions, but the broader outcome described here is the competence that comes from deploying resources. So the best answer is the one that captures this developed, deployable ability: competence.