An Internal New Venture Is the Most Appropriate Strategic Choice

question 41

Multiple Choice

An internal new venture is the most appropriate strategic choice when:

• A) an industry is mature.
• B) the firm will enter on a small scale.
• C) the firm has competencies that can be leveraged.
• D) speed of entry is the most important consideration.
• E) there is strong pressure for quick profitability.

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Definitions:

Bargaining Power

The ability of a party (individual, group, company) to exert influence over the terms and conditions of an agreement or negotiation.

Winner's Curse

The Winner's Curse is a phenomenon that occurs in auctions, where the winner tends to overpay due to estimating the value of an item more highly than its true value.

Key-number System

A comprehensive indexing system used in legal research to organize and categorize case law into various topics and subtopics.

Legal Research

Investigative work conducted to uncover relevant legal precedents, statutes, and case law to support legal arguments.