Which of the Following Is a Disadvantage of Greenfield Ventures

question 68

Multiple Choice

Which of the following is a disadvantage of greenfield ventures?

• A)They have a higher potential for throwing up unpleasant surprises.
• B)It is much more difficult to build an organizational culture from scratch than to change the culture of an existing unit.
• C)Companies find it difficult to avoid falling into the trap of the hubris hypothesis.
• D)It is slower to establish than acquisitions.
• E)A firm does not have the freedom to build the kind of subsidiary that it wants.

---

Definitions:

Total Liabilities

The aggregate of all debts and financial obligations a company owes to external parties.

Contra-Liability Account

An account that reduces the amount of a liability, often used to record discounts or allowances that decrease the total amount owed by a company.

Cash Inflow

The cumulative sum of funds flowing into a company, usually originating from its operations, investments, and financial activities.

Semiannually

Occurring twice a year, typically every six months.