Research Shows That a Key Competence of High-Performance Diversified Firms

question 86

Multiple Choice

Research shows that a key competence of high-performance diversified firms is the ability to

• A) hide excess capital.
• B) efficiently dispose of excess capital.
• C) effectively allocate financial capital.
• D) invest internationally.

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Definitions:

Marginal Utility

The additional satisfaction or utility gained from consuming one more unit of a good or service.

Total Utility

The overall satisfaction or benefit a person receives from consuming a particular quantity of goods or services.

Income Effect

The alteration in a person's or an economy's earnings and its effect on the amount of a product or service they seek to purchase.

Law of Demand

The principle that there is an inverse relationship between the price of a good and the amount of it consumers are willing to buy, all else being equal.