Diversifying into a New Industry by Forming a New Internal

question 32

Multiple Choice

Diversifying into a new industry by forming a new internal subsidiary to enter and compete in the target industry is attractive when

• A) all of the potential acquisition candidates are losing money.
• B) it is impractical to outsource most of the value chain activities that have to be performed in the target business/industry.
• C) there is ample time to launch the new business from the ground up.
• D) the company has built up a hoard of cash with which to finance a diversification effort.
• E) none of the companies already in the industry are attractive strategic alliance partners.

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Definitions:

Antisocial Orientation

A pattern of behavior that is hostile, disruptive, or violating of societal norms and often involves disrespect for others.

Rape-Supportive Myths

Beliefs and attitudes that trivialize, normalize, or endorse sexual violence, thereby contributing to its perpetuation.

Pedophilic Disorder

A psychiatric disorder characterized by an adult having a sexual preference for prepubescent children.

Sexual Attraction

An appeal or desire toward someone, often based on physical or emotional characteristics.