The __________Diversification Strategy Creates Value in Two Ways

question 104

Multiple Choice

The __________diversification strategy creates value in two ways.First, because the core competency has already been developed in one business, the firm does not have to allocate resources to develop it.Second, because the resource is intangible, competitors cannot easily imitate it.

• A) related constrained
• B) unrelated
• C) related linked
• D) dominant business

---

Definitions:

Recession

An interval where the economy experiences a downturn, with a noticeable decrease in trade and manufacturing activities, usually identified by GDP decreasing for two straight quarters.

Inflation

An increase in the economy’s average price level.

Expansion

Expansion refers to the phase in the economic cycle where an economy is growing and experiencing increasing levels of output, employment, and income.

Actual Output

The actual quantity of goods and services produced in an economy over a specific period.