Which One of the Following Is Not a Factor That

question 79

Multiple Choice

Which one of the following is not a factor that makes it appealing to diversify into a new industry by forming an internal start-up subsidiary to enter and compete in the target industry?

• A) When internal entry is cheaper than entry via acquisition
• B) When a company possesses the skills and resources needed to compete effectively and there is ample time to launch the business
• C) When adding new production capacity will not adversely impact the supply/demand balance in the industry
• D) When the industry is growing rapidly and the target industry is comprised of several relatively large and well-established firms
• E) When incumbent firms are likely to be slow or ineffective in combating a new entrant's efforts to crack the market

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Definitions:

Sales

The exchange of goods or services for money, constituting a basic activity and measure of success for most businesses.

Expenses

Costs incurred by a business or individual in the process of earning revenue.

Outdoor Media

Advertising media found outside of homes, including billboards, bus stops, and digital signages, used to promote products or services.

Billboards

Large outdoor advertising structures typically positioned in high-traffic areas to maximize visibility to passersby and motorists.