Diversification Is One Way for a Firm To

question 57

Multiple Choice

Diversification is one way for a firm to:

• A)Countertrade
• B)Manage economic exposure
• C)Invest internationally
• D)Combine interest and exchange rates
• E)Finance import-export trade

---

Definitions:

Intangible Asset

An asset that lacks physical substance but provides economic value to the company, such as patents, copyrights, and brand names.

Intangible Assets

Assets that lack physical substance but possess economic value, including patents, trademarks, and goodwill.

Land Held

Land held pertains to property owned by an entity as an investment or for future use, not immediately purposed for business operations.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its useful life, reducing its book value.