Compared to Internal Product Development, Acquisitions Allow

question 34

Multiple Choice

Compared to internal product development, acquisitions allow:

• A) immediate access to innovations in mature product markets.
• B) more accurate prediction of return on investment.
• C) slower market entry.
• D) more effective use of company core competencies.

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, working to create wealth through investment or production.

Operating Cash Flows

Cash generated from a company's normal business operations, indicating its ability to generate revenue.

Total Opportunity Cost

The overall cost of choosing one option when the value of the best alternative option is considered.

Total Carrying Costs

The total expenses associated with holding inventory, including storage, insurance, taxes, and opportunity costs.