New Ventures Are a More Attractive Strategy Than Acquisitions When

question 57

Multiple Choice

New ventures are a more attractive strategy than acquisitions when:

• A) entry barriers are high.
• B) exit barriers are high.
• C) a company's business model is based on using its technology to innovate new kinds of products for related markets.
• D) it needs to move fast to establish a presence in an industry, commonly an embryonic or growth industry.
• E) the company must make the huge investment necessary to develop the set of value-chain activities required to make and sell products in the new industry.

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Definitions:

Chemical Energy

A form of potential energy stored in the bonds of chemical compounds, released during chemical reactions.

Photorespiration

A process in plant metabolism where oxygen is consumed and carbon dioxide is released, typically reducing the efficiency of photosynthesis.

C4 Plants

Plants that utilize the C4 carbon fixation pathway, enabling them to photosynthesize more efficiently in high light and temperature conditions than C3 plants.

CAM Plants

Plants that utilize Crassulacean Acid Metabolism, an adaptation for photosynthesis in arid conditions.