The Most Popular Strategy for Entering New Businesses and Accomplishing

question 41

Multiple Choice

The most popular strategy for entering new businesses and accomplishing diversification is

• A) forming a joint venture with another company to enter the target industry.
• B) internal startup.
• C) acquisition of an existing business already in the chosen industry.
• D) forming a strategic alliance with another company to enter the target industry.
• E) None of these-strategic alliances and joint ventures are equally popular and rank well ahead of acquisition and internal start-up in terms of frequency of use.

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Definitions:

Standard Of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a certain geographic area.

Per Capita Income

The average income earned per person in a given area in a specified year, often used to gauge the economic prosperity of a population.

Tariff Barriers

Taxes imposed on imported goods to protect domestic industries from foreign competition and raise government revenue.

Exploiting

Taking unfair advantage of a person, group, or situation for one's own benefit, often ethically or legally questionable.