Computer Peripherals Provider Ascent Plans to Enter a New Market

question 125

Multiple Choice

Computer peripherals provider Ascent plans to enter a new market in another country.Which of the following represents a threat for Ascent?

• A)Ascent lacks the resources to enter the market on its own and has to find a partner in the new market.
• B)Ascent will have to plan its entry carefully as the laws in the country do not favour foreign businesses.
• C)Ascent needs to improve its service capabilities in the new country as this is an important source of revenue.
• D)Ascent has to find internal resources to provide most of the financing for the new venture.

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Definitions:

Adverse Selection

A situation in which sellers have information that buyers do not have, or vice versa, affecting the quality of goods or services offered.

Probationary Period

A trial period at the beginning of employment during which an employer can evaluate an employee’s performance and fit with the company.

ISO 9000

A set of international standards for quality management and quality assurance designed to help companies ensure they meet customer and other stakeholder needs.

Adverse Selection

A situation where asymmetric information leads one party in a transaction to select undesirable risks without the other party's knowledge.