Which of the Following Is NOT a Factor That Makes

question 108

Multiple Choice

Which of the following is NOT a factor that makes it appealing to diversify into a new industry by forming an internal startup subsidiary to enter and compete in the target industry?

• A) when internal entry is cheaper than entry via acquisition
• B) when a company possesses the skills and resources to overcome entry barriers and there is ample time to launch the business and compete effectively
• C) when adding new production capacity will not adversely impact the supply demand balance in the industry by creating oversupply conditions
• D) when the industry is growing rapidly and the target industry is comprised of several relatively large and well-established firms
• E) when incumbent firms are likely to be slow or ineffective in combating a new entrant's efforts to crack the market

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Definitions:

Prima Facie

A Latin term meaning "on its face" or "at first glance"; it refers to evidence that, unless rebutted, would be sufficient to prove a particular proposition or fact.

Duress

A situation where an individual is forced or pressured into making a decision against their will or judgement through threats or coercion.

Telekenex IXC

A telecommunications service provider known for offering voice and data services to businesses.

Unilateral Contract

A promise exchanged for an act.