The--------------------- Diversification Strategy Creates Value in Two Ways

question 57

Multiple Choice

The--------------------- diversification strategy creates value in two ways. First,since the core competence has
Already been developed in one business,the firm does not have to allocate resources to develop it. Second,since the resource is intangible,competitors cannot easily imitate it.

• A)related constrained
• B)unrelated
• C)related linked
• D)dominant business

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Definitions:

FIFO Method

"First In, First Out," an accounting method for valuing inventory, where the earliest items acquired are the first to be sold.

Inventory Valuation

The method used to assess the cost or market value of inventories held by a business for the purpose of financial reporting.

Interim Financial Reporting

Reporting of a company's financial performance and position for a period shorter than its fiscal year, often quarterly.

Statement Of Cash Flows

A financial report that provides a summary of a company's cash inflows and outflows over a specified period, showing how well it manages its cash position.