1. I have argued that the part of discrepancy between firms' stock market value and their book value reflects the fact that intangible resources are typically undervalued or not valued at all in their balance sheets. For the companies listed inTable 5.1, which types of resource are likely to be absent or undervalued in the firms' balance sheets?

High Superfluous Strengths Key Strengths RELATIVE STRENGTH Zone of Irrelevance Key Weaknesses LOW Low High STRATEGIC IMPORTANCECompany Nationality Market capitalization ($ bn.) Market-to-book ratio Lockheed Martin Corp. US 88 40.8 Home Depot, Inc. US 189 27.8 Netflix, Inc. US 80 26.0 Amazon.com US 472 22.8 MasterCard, Inc. US 152 22.8 AbbVie, Inc. US 140 22.0 Glaxo Smith Kline UK 96 14.9 NVIDIA Corp. US 02 14.5 Pepsico, Inc. US 164 13.4 Novo Nordisk A/S Denmark 95 13.1 Celgene Corp. US 171 12.8 Naspers Ltd. S. Africa 100 2.4 Starbucks Inc. US 77 12.2 Tencent Holdings China 408 12.0 Accenture plc UK 88 10.5 3M Company US 125 10.5 Alibaba China 449 10.4 Roche Switzerland 175 9.1 Coca-cola Co. US 199 8.9 Altria Inc. US 120 8.8