When a Firm Does Not Have the Resource Required for Pursuing

question 74

Multiple Choice

When a firm does not have the resource required for pursuing a growth strategy,and if the resource in question is not easily tradable,the implication for the strategist is most likely to

• A) borrow via a contractual agreement.
• B) pursue internal development.
• C) enter into a licensing agreement.
• D) consider an outright acquisition.

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Definitions:

Accounting Equation

The foundational principle of double-entry bookkeeping that states assets equal liabilities plus equity.

Business Activity

Any action that is engaged in for the primary purpose of making a profit, including operations, marketing, and production.

Planning

The process of outlining business objectives, strategies, and actions to achieve those objectives.

Treasury Bonds

Long-term government securities issued with the promise of payment upon maturity with a fixed interest rate.