Acquisition of an Existing Firm Rather Than Via Internal Development

question 37

Multiple Choice

Acquisition of an existing firm rather than via internal development may be the least risky and cost-efficient means of overcoming entry barriers such as

• A) putting its own strategy into place.
• B) accelerating efforts to build a strong market presence.
• C) moving directly to the task of transferring resources and personnel, integrating and redirecting activities into its own operation.
• D) fast-tracking exports into a foreign market by marketing indirectly thru local rivals.
• E) gaining access to local distribution networks, building supplier networks, and establishing working relationships with key government officials.

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Definitions:

Net Income

The amount of earnings after subtracting all costs and expenses from revenue, including taxes and other deductions. Representing a company's profit over a specified period.

Monthly Weighted

Refers to averaging or aggregating financial or statistical measures over a month with differing weights applied to the data points, taking into account their relative importance or volume within that period.

Admittance

Refers to the permission granted for entry into a system or location, or in electrical engineering, it’s the measure of how easily an alternating current flows through a conductor.

Partnership

A legal arrangement between two or more parties who agree to do business together and share its profits and losses.