One Advantage of an Unrelated Diversification Strategy in a Developed

question 52

True/False

One advantage of an unrelated diversification strategy in a developed economy is that competitors cannot easily imitate the financial economies, whereas they can easily replicate the value gained through the use of a related diversification strategy.

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Definitions:

Abatement

A reduction, decrease, or complete removal, often in reference to taxes, rent, or nuisances.

Legatee

One designated in a will to receive a legacy (a gift of personal property).

General Bequest

A testamentary gift of a particular amount of money or a specific percentage of the estate, not tied to any particular asset.

Testator

A person who has made a will or given a legacy.