Internal New Ventures

question 61

Multiple Choice

Internal new ventures

• A) should be killed if they don't make a profit within three years.
• B) are faster than acquisitions.
• C) are preferred to acquisitions when entry barriers are high.
• D) are often preferred by science-based companies.
• E) are best when the company is entering the industry on a small scale.

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Definitions:

Marginal Utilities

The added satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Pocket Money

Usually small amounts of money given to children by their parents on a regular basis.

Hard Candies

Small, flavored sugar candies that are solid at room temperature, often sucked rather than chewed.

Marginal Utility

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.