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:

Mesonephric Ducts

Embryonic structures in many vertebrates that develop into male reproductive organs and vestigial in females.

Testosterone

A steroid hormone produced primarily in the testes of males and the ovaries of females, responsible for the development of male sex characteristics and the regulation of libido.

Paramesonephric Duct

One of two embryonic tubes extending along the mesonephros and emptying into the cloaca; in the female, the duct forms the uterine tube, the uterus, and part of the vagina; in the male, it degenerates.

Ductus Deferens

Duct of the testicle, running from the epididymis to the ejaculatory duct; also called vas deferens.