Compared with Diversification Based on Intangible Resources, Diversification Based on Financial

question 87

Multiple Choice

Compared with diversification based on intangible resources, diversification based on financial resources is:

• A) less imitable and less likely to create value on a long-term basis.
• B) more imitable and less likely to create value on a long-term basis.
• C) less imitable and more likely to create value on a long-term basis.
• D) more imitable and more likely to create value on a long-term basis.

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Definitions:

Funds Available

The total resources, including cash and credit, that are accessible for use in operations, investments, or other financial activities.

Self-Imposed Budget

A budget created with the input and agreement of lower-level employees, aiming to increase accountability and performance.

Top Management

The highest level of management within an organization, responsible for setting strategic goals and ensuring their realization.

Adverse Behavioural Responses

Negative reactions or changes in behavior resulting from policies, actions, or conditions, often unintended consequences.