Internal New Ventures Are Likely to Be Preferred When

question 58

Multiple Choice

Internal new ventures are likely to be preferred when

• A) entry barriers are high.
• B) exit barriers are high.
• C) a company possesses a set of valuable competencies in its existing businesses that can be leveraged to enter new business.
• D) the company needs more mega-opportunities.
• E) the industry is in the mature stage of the industry life cycle.

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Definitions:

Tax Purposes

Motivations or reasons related to the calculation, payment, or avoidance of taxes.

Illegal Contracts

Agreements that are not enforceable by law due to their involvement in illegal activities or because they contravene public policy.

Void

Describes a contract or legal agreement that has no legal force or effect, often because it lacks a necessary element or violates the law.

Illegality

The quality or state of being contrary to law; actions or conditions that are against the law.