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:

Lowest Cost

The scenario in which the expenditure required to achieve a certain objective or to purchase goods and services is minimized.

Opportunity Cost

The act of sacrificing possible gains from alternative decisions when one is made.

Freight Train

A freight train is a train composed of freight cars for the purpose of transporting goods and materials rather than passengers.

Sugar

A sweet substance primarily obtained from sugarcane and sugar beets, used as a sweetener in food and drinks.