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GN CorpAnd BC Inc

Question 32

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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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