Which Is Not One of the Four Conditions That Make

question 26

Multiple Choice

Which is not one of the four conditions that make an internal start-up strategy appealing?

• A) When creating an internal start-up is cheaper than making an acquisition
• B) When adding new production capacity will adversely impact the supply-demand balance in the local market
• C) Having the ability to gain good distribution access
• D) Having scale economies to compete against local rivals
• E) All of these

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Definitions:

Incremental Cash Flow

The additional cash flow generated by a company from taking on a new project or making a new investment.

Tax Rate

The ratio of taxation applied to the earnings of a corporation or a person.

Leasing NET Advantage

An analysis to determine if leasing an asset is more economically advantageous than purchasing it outright.