When a Company Is Successful in Pursuing the Strategy of Concentration

question 25

True/False

When a company is successful in pursuing the strategy of concentration on a single industry, it uses its divisional skills to develop new products or expand its locations.

---

Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on the current market price or the price for similar assets.

Exchange Transactions

Transactions in which each party to the deal exchanges goods or services of comparable value; this can include trade of goods, services, or financial assets.

Tangible Assets

Physical assets that can be touched or felt, such as machinery, buildings, and land.

Cost Method

An accounting method used to value investments, where the investment is recorded on the balance sheet at its purchase cost.