Which of the Following Statements Regarding Internal Development as a Means

question 13

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 or service offers.
• B) An advantage of internal development is that it is generally faster than other means of diversification.
• C) The firm can capture 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:

Strategy

A plan of action designed to achieve a long-term or overall aim, often involving positioning a business for competitive advantage.

Economic Environment

The combination of economic factors that impact the operation and performance of businesses, including inflation, employment rates, economic policy, and market demand.

Competitive Environment

The dynamic external system in which businesses compete against each other for market share and profitability.

Legal/Regulatory Environment

The framework of laws, regulations, and guidelines in which a business operates.