What Would Cause a Business Model Based on Diversification to Lead

question 43

Essay

What would cause a business model based on diversification to lead to a loss of competitive advantage?

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Definitions:

Tax Increases

The act of raising governmental levies on income, property, sales, or transactions, leading to a higher financial burden on the taxed entities.

Severe Recession

A period of significant decline in economic activity across the economy that lasts for an extended period of time.

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and in a given time period.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s.