Briefly Explain How Economic Growth Comes About

question 14

Essay

Briefly explain how economic growth comes about.

Understand the various methods of business valuation.

Recognize the significance of tangible and intangible assets in business transactions.

Understand the differences between tangible and intangible assets.

Recognize the concept and significance of goodwill in business transactions.

---

Definitions:

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position.

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors, who might require separate products or marketing strategies.

Economies Of Scale

Cost advantages that a business achieves due to the scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Differentiation

A strategy employed by businesses to distinguish their products or services from those of competitors, often through unique features, branding, or quality.