Which One of the Following Is Not a Factor That

question 76

Multiple Choice

Which one of the following is not a factor that makes it appealing to diversify into a new industry by forming an internal start-up 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:

Corporations

Legal entities that can enter into contracts and own property. They are taxed at a lower rate than individuals and their owners are normally not liable for the corporation’s debt or any harm it may cause the public.

Consensus Crimes

Crimes that are universally condemned by society, such as murder or theft, and seen as inherently wrong.

Criminals

Persons who engage in activities that breach legal codes and are thus subject to judicial indictment and punishment; this definition reiterates their adversarial role against societal norms and laws.

Prison

An institution for the confinement and rehabilitation of individuals who have been convicted of crimes.