An Internal New Venture Is the Most Appropriate Strategic Choice

question 66

Multiple Choice

An internal new venture is the most appropriate strategic choice when

• A) an industry is mature.
• B) the firm will enter on a small scale.
• C) there is strong pressure for quick profitability.
• D) speed of entry is the most important consideration.
• E) a firm has competencies that can be leveraged.

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Definitions:

Owner's Drawings

The amount of money or value of other assets withdrawn from the business by the owner for personal use.

Service Revenue

Income earned by providing services as opposed to selling physical goods.

Equipment

Tangible property used in operations, such as machinery and office hardware, which has a useful life longer than one year.

Income Statement

A financial report that shows the revenues, expenses, and profits or losses of a company over a specific period.