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:

Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Owner's Equity Statement

A financial document that details changes in the equity of a business's owner(s) over a period of time.

Income Statement

A financial document that shows a company's revenues and expenses over a specific period, culminating in the net income.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a particular date, reporting assets, liabilities, and equity.