Which of the following resources are more likely to create value in the diversification process?
A) Plant and equipment
B) Tacit knowledge
C) Excess capacity
D) Financial resources

Question

Quizplus · Accepted Answer

Tacit knowledge, or the knowledge and expertise that employees possess, can provide a competitive advantage and contribute to the success of a diversified company. Plant and equipment and excess capacity may not necessarily be relevant or useful in all diversified ventures. Financial resources can be important, but they alone may not create value without the right knowledge and expertise to invest and allocate those resources effectively.

Which of the Following Resources Are More Likely to Create