A Firm That Diversifies by Exploiting Its Resources and Capability

question 59

True/False

A firm that diversifies by exploiting its resources and capability advantages in its original business will have higher costs than firms that begin new business without these revenues and capability advantages or lower revenues than firms lacking these advantages, or both.

Analyze the effects of changes in fixed costs and sales volume on the break-even point.

Determine the contribution margin ratio and its impact on profitability.

Understand the impact of changes in variable and fixed costs on net income.

Calculate and interpret a company's margin of safety percentage.

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Definitions:

Training Method

A specific approach or technique used to enhance the skills, knowledge, or performance of individuals or groups.

Training Effectiveness

The degree to which a training program achieves its intended outcomes, often assessed by the improvement in participants' knowledge, skills, and behaviors.

Training Method

Specific approaches or techniques used to impart knowledge or skills to learners in an educational or professional setting.

Advantages

Benefits or favorable points that give something a superior position in comparison to others.