Compared to Diversification That Is Grounded in Intangible Resources, Diversification

question 117

True/False

Compared to diversification that is grounded in intangible resources, diversification based on financial resources only is more visible to competitors and thus more imitable and less likely to create value on a long-term basis.

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Definitions:

Closed Economy

An economic system that does not interact with other economies in terms of trade, investment, or migration, relying entirely on its own resources.

Certificate of Indebtedness

A type of financial instrument indicating the holder is owed a debt by the issuer, typically with terms specifying the repayment of the principal and interest.

Bonds

Debt securities issued by entities such as governments or corporations to raise capital, promising to repay the principal along with interest at a future date.

Private Saving

The portion of households' income that is not consumed or paid in taxes, and is instead saved.