GN CorpAnd BC Inc

question 32

Multiple Choice

GN Corp.and BC Inc.are two competing firms in the same industry.GN Corp.'s tangible assets are valued at $15 billion and its intangible assets are valued at $35 billion.BC Inc.'s tangible assets are valued at $5 billion and its intangible assets are valued at $45 billion.What can be concluded from this information?

• A) It is easier to buy intangible assets with cash than tangible assets.
• B) It is likely that BC Inc. is better enabled than GN Corp. to gain and sustain a competitive advantage.
• C) It takes longer time to build tangible assets than intangible assets.
• D) There is no resource heterogeneity between the two firms, BC Inc. and GN Corp., as they operate in the same industry.

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Definitions:

Average Revenue

The amount of revenue generated per unit of output sold, calculated by dividing total revenue by the quantity of units sold.

Total Revenue

The total amount of money generated by the sale of goods or services before any costs are subtracted.

Output Level

The amount of products or services generated by a company or economic system within a specified timeframe.