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:

Formula Sales Approach

A structured selling method that follows a predefined sequence of steps tailored to guide the customer through the buying process.

Armour Brand

A notable brand, particularly in the context of sports clothing and accessories, known for its high-quality products.

Protective Coating

A layer or substance applied to surfaces to protect them from corrosion, weathering, abrasion, or other environmental damage.

Visual Aids

Tools such as charts, graphs, and images used to enhance a presentation or communication.