The New Entry Strategy That a Firm Chooses Is Dependent

question 94

Multiple Choice

The new entry strategy that a firm chooses is dependent upon the ________ and the ________ of the new business concept.

• A) riskiness; cost
• B) riskiness; potential sales
• C) riskiness; innovativeness
• D) idea; innovativeness

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Definitions:

Gain on Sale

The profit recognized when an asset is sold for more than its carrying amount.

Other Revenue

Income that a business earns from activities not related to its primary operations, such as investment income or rental income.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash in the short term, such as property, plant, and equipment.

Current Assets

Items expected to be cashed in, liquidated, or expended within 12 months or throughout the duration of the business cycle, whichever period is greater.