Paper 1 · Business Planning
An enterprise's capabilities differ from its resources in that capabilities are
Awhat the firm can do with what it has
Bthe tangible assets recorded on its books
Cthe finance available to it from lenders
Dthe raw materials it buys from suppliers
Explanation: A capability is the ability to deploy and coordinate resources to perform an activity well, and it lives in skills, routines and know-how rather than on the balance sheet. Two firms can hold identical resources and perform very differently, and the difference is capability.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Nov 2018, Q7