Which term describes the ability of a firm to recover quickly from a supply chain disruption?

• A. Liquidity
• B. Resilience
• C. Elasticity
• D. Efficiency

Answer: (B)

Verified step by step guidance

1. Understand the key terms provided in the options: Liquidity, Resilience, Elasticity, and Efficiency, and how they relate to a firm's operations.
2. Liquidity refers to a firm's ability to meet short-term financial obligations, typically involving cash or assets that can be quickly converted to cash.
3. Elasticity in economics usually describes how quantity demanded or supplied responds to changes in price, not the firm's ability to recover from disruptions.
4. Efficiency relates to how well a firm uses its resources to produce output, focusing on minimizing waste and costs.
5. Resilience is the term that specifically describes a firm's ability to recover quickly from disruptions, such as supply chain interruptions, by adapting and maintaining operations.