An Internal New Venture Is the Most Appropriate Strategic Choice

question 41

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) the firm has competencies that can be leveraged.
• D) speed of entry is the most important consideration.
• E) there is strong pressure for quick profitability.

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Definitions:

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is the nominal value of a security.

Semi-Annual Interest

Interest that is calculated and paid twice a year, commonly found in bonds and certain types of loans.

Coupon Rate

Interest yielded on a bond each year, displayed as a percentage of its face value.

Market Rate Of Interest

The prevailing rate of interest available in the marketplace for securities of similar risk and maturity.