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Question

_________ means the ability of the environment to absorb degradation

A
Absorptive capacity
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B
Load bearing
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C
Carrying capacity
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D
None of these
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Solution

The correct option is A Absorptive capacity
Absorptive capacity is a firm's ability to identify, assimilate, transform, and apply valuable external knowledge. Put another way, absorptive capacity is a limit to the rate or quantity of scientific or technological information that a firm can absorb. Absorptive capacity, the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovativecapabilities. Its a function of the firm's prior knowledge

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