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:

Natural Rate of Output

The level of production achieved when the economy is operating at its full employment level, without excessive inflation.

Recession

A noticeable drop in economic activity affecting the entire economy, enduring for longer than several months, and commonly observed in metrics such as real GDP, real income, employment, industrial output, and wholesale-retail transactions.

Aggregate Demand

Whole demand for goods and services across an economic landscape, appraised at a given overall price point throughout a defined timeframe.

Household Saving

The portion of a household's disposable income that is not spent on current consumption but is set aside for future use.