Generally Internal Development of a New Business Has Appeal,except When

question 141

Multiple Choice

Generally internal development of a new business has appeal,except when:

• A) the parent company has most of the required skills and resources required to compete effectively.
• B) there is ample time to launch the business.
• C) the startup does not have to compete on a head-to-head basis with powerful,bigger rivals.
• D) adding new production capacity will not affect supply-demand balances.
• E) incumbent firms are likely to be fast or effective in preempting a new entrant's efforts to crack the market.

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Definitions:

Inventory

The total amount of goods, materials, and products held by a company for the purpose of sale or production, representing both a current asset and an integral part of the supply chain.

Retained Earnings

The portion of net income that is not distributed as dividends to shareholders, but retained by the company for reinvestment.

Notes Payable

Short-term or long-term liabilities representing amounts the company owes because it has issued promissory notes.

Accounts Receivable

Receivables by a corporation from its clients for goods or services that have been extended or utilized, yet the corresponding payments are awaited.