Strategic Fit Between Two or More Businesses Exists When One

question 29

Multiple Choice

Strategic fit between two or more businesses exists when one or more activities comprising their respective value chains present opportunities

• A)to prevent the transfer of expertise or technology or capabilities from one business to another.
• B)to independently preserve common brand names from cross-business usage.
• C)to increase costs by combining the performance of the related value chain activities of different businesses.
• D)for cross-business collaboration to build valuable new resource strengths and competitive capabilities.
• E)to maintain business value chain activities separate and apart from one business to another to protect company independence.

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Definitions:

Craft Unions

Labor unions that represent workers in specific trades or crafts, focusing on specific skill sets and professions.

Labor Demand Curves

Illustrates the relationship between the wage rate and the quantity of labor that employers are willing to hire, showcasing how changes in wages can affect employment levels.

Minimum Wage

The lowest legally permissible amount that workers can be paid by employers, usually set by government policy.

Principal-agent Problem

A conflict of interest that arises when one party (the agent) is expected to act in the best interest of another (the principal) but has incentives to act in their own interest.