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.

Respuesta :

Answer:

The answer is: B) It is likely that BC Inc. is better enabled than GN Corp. to gain and sustain a competitive advantage.

Explanation:

Intangible assets are assets that are not physical. They include brand recognition and intellectual property (patents, trademarks and copyright).

They are very important for a company to be able to gain (and later sustain) competitive advantages. A company that can develop new and better technologies will have a clear advantage over its competitors.

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