New Ventures Are Likely to Be Preferred Compared to Acquisitions

question 57

Multiple Choice

New ventures are likely to be preferred compared to acquisitions when:

• A)entry barriers are high.
• B)exit barriers are high.
• C)a company's business model is based on using its technology to innovate new kinds of products for related markets.
• D)it needs to move fast to establish a presence in an industry, commonly an embryonic or growth industry.
• E)the company must make the huge investment necessary to develop the set of value-chain activities required to make and sell products in the new industry.

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Definitions:

WRAT4

The Wide Range Achievement Test, 4th edition, an academic skills assessment measuring reading, spelling, and arithmetic skills.

Reading Comprehension

The ability to understand, interpret, and derive meaning from written language.

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