Company Leaders That Base Their Diversification Strategy on Transferring Competencies

question 15

Multiple Choice

Company leaders that base their diversification strategy on transferring competencies tend to acquire new businesses that are ____ to their existing business activities.

• A) unrelated
• B) not comparable
• C) opposed
• D) related
• E) identical

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Definitions:

Waste of Resources

The inefficient use of materials, labor, energy, or capital that does not maximise potential utility or value.

Monopolistically Competitive

In a monopolistically competitive market, many firms sell products that are similar but not identical, allowing for product differentiation and some degree of market power over prices.

Short Run

A period in economic analysis in which at least one input is fixed while others are variable.

Long Run

the period in which all factors of production and costs are variable, allowing for all possible adjustments, including the adoption of new technology.