New Ventures Are a More Attractive Strategy Than Acquisitions When

question 57

Multiple Choice

New ventures are a more attractive strategy than acquisitions when:

• A) entry barriers are high.
• B) exit barriers are high.
• C) a company's business model is based on using its technology to innovate new kinds of products for related markets.
• D) it needs to move fast to establish a presence in an industry, commonly an embryonic or growth industry.
• E) the company must make the huge investment necessary to develop the set of value-chain activities required to make and sell products in the new industry.

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Definitions:

Appellate Jurisdiction

The authority of a court to review and decide on appeals from the decisions of lower courts.

Original Jurisdiction

The power of a court to hear a case for the first time, as opposed to appellate jurisdiction.

Concurrent Jurisdiction

The situation where two or more courts from different systems simultaneously have jurisdiction over a specific case.

U.S. Courts of Appeals

A group of federal courts that review decisions made by district courts, regulatory agencies, and other federal courts, except the Supreme Court.