Reasons Why a Firm Might Benefit from the Creation of a Separate

question 48

Multiple Choice

Reasons why a firm might benefit from the creation of a separate new-venture division include all of the following except

• A) better protection of the division's autonomy.
• B) less scrutiny from top managers.
• C) removal from day-to-day pressures of the firm.
• D) ease in developing a culture that fosters innovation.
• E) development of a science-based business model.

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Definitions:

TPS

Transaction Processing System, a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise.

CRM

Customer Relationship Management, a technology for managing a company's interactions and relationships with current and potential customers.

MRP II

Manufacturing Resource Planning (MRP II) is an integrated method for effective planning of all resources of a manufacturing company, including production scheduling and inventory management.

MRP

Stands for Material Requirements Planning, a system for calculating materials and components needed to manufacture a product.