Which of the Following Is a Defining Feature of Firms

question 63

Multiple Choice

Which of the following is a defining feature of firms that practice related-constrained diversification?

• A)They earn more than 70 percent of their revenues from their main line of business and the rest from businesses located along the value chain.
• B)They earn less than 70 percent of their revenues from their main line of business and their other lines of business share product, technological, and distribution linkages with the main business.
• C)They operate in related markets, but fewer linkages exist between the new and existing markets than the elements create separately.
• D)They earn more than 95 percent of the revenues from a single line of business.

Identify the effect of parameters on the solutions of a quadratic equation.

Understand the relationship between nominal and real interest rates, including the role of inflation.

Explain the term structure of interest rates and the different shapes of the yield curve.

Identify the components of interest rates, including risk premiums, and how they influence observed interest rates.

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