A Firm That Diversifies by Exploiting Its Resources and Capability

question 59

True/False

A firm that diversifies by exploiting its resources and capability advantages in its original business will have higher costs than firms that begin new business without these revenues and capability advantages or lower revenues than firms lacking these advantages, or both.

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Definitions:

Taste Buds

Sensory organs located on the tongue that are responsible for perceiving and distinguishing between different tastes.

Semicircular Canals

Structures in the inner ear involved in maintaining balance and sensing head rotation.

Cochlea

Spiral-shaped structure of the vertebrate inner ear containing the sensory receptors for hearing.