When Executives of a Firm Consider Business Opportunities Only Where

question 47

Multiple Choice

When executives of a firm consider business opportunities only where they can leverage their existing competencies and resources, it can be concluded that the firm is using

• A) related-constrained diversification.
• B) related-linked diversification.
• C) strategic outsourcing.
• D) offshore outsourcing.

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Definitions:

Elastic Demand

Characterizes a market situation where demand for a product significantly changes in response to a change in the product's price.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to utilize resources in one way instead of another.

Lower Incomes

Earnings that fall below the median level of national income, often associated with reduced purchasing power and economic opportunities.

Direct Price Discrimination

The practice of charging different prices to different consumers for the same good or service, based directly on the willingness of each customer to pay.