If a Resource Is Rare or Unique to a Particular

question 90

Multiple Choice

If a resource is rare or unique to a particular firm,then

• A) the industry in which the firm operates will experience perfect competition.
• B) the mobility of the resource will be high.
• C) the firm will be able to maintain a competitive advantage for a long period.
• D) it will be less costly for rivals to imitate the resource.

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Definitions:

Active Asset Allocation

Active Asset Allocation is a strategy in which an investor adjusts the proportions of various assets in a portfolio based on current market conditions and forecasts to try to maximize returns.

Market Conditions

The environmental and economic factors that affect the supply and demand, prices, and the success of businesses within a particular market.

Portfolio Proportions

The percentage composition of different assets within an investment portfolio.

Target Rate Of Return

The specific return that an investor aims to achieve on an investment, which guides their selection of investment vehicles and strategies.