Stanley's Services Firm Wants to Enter an Embryonic Market, but It

question 50

Multiple Choice

Stanley's services firm wants to enter an embryonic market, but it doesn't have enough cash to purchase the required assets. Which of the following strategies would you recommend to Stanley?

• A) Diversify through acquisition.
• B) Do not diversify at all.
• C) Diversify with an internal new venture.
• D) Diversify with a joint venture.
• E) Diversify through vertical integration.

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Definitions:

Automatically Dissolved

Describes a situation or status wherein an entity, such as a corporation or partnership, discontinues its legal existence without the need for formal dissolution procedures.

Hardware Merchants

Businesses specializing in the retail or wholesale of tools, building materials, and hardware supplies.

Weekend Selling

A retail strategy aimed at boosting sales by offering special deals or promotions during weekends.

Warranty

A guarantee, typically by a seller to a buyer, assuring certain facts or conditions about goods or services.