Which of the Following Statements Regarding Internal Development as a Means

question 34

Multiple Choice

Which of the following statements regarding internal development as a means of diversification is false?

• A) Many companies use internal development to extend their product lines or add to their service offerings.
• B) An advantage of internal development is that it is generally faster than other means of diversification and firms can benefit from speed in developing new products and services.
• C) The firm is able to capture the wealth created without having to "share the wealth" with alliance partners.
• D) Firms can often develop products or services at a lower cost if they rely on their own resources instead of external funding.

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Definitions:

Co-Active Task

A task that involves mutual or joint activity, requiring participants to work together actively towards a common goal.

Free-Riding

The behavior of individuals who benefit from resources or services without contributing to their provision.

Social Loafing

The situation in which people demonstrate lower effort in pursuing a goal as part of a group than they do while working solo.

Human Efficiency

The effectiveness with which humans perform tasks, often evaluated in terms of speed, accuracy, and energy expenditure.