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:

Accounts Receivable Period

The average number of days it takes for a company to collect payments from its credit sales.

Cash Cycle

The duration a company takes to convert its investments in inventory and other resources into cash flows from sales.

Inventory Period

The average time that goods remain in inventory before being sold, reflecting a company's efficiency in managing inventory.

Receivables Period

The amount of time it takes for a company to collect payments owed by its customers after a sale has been made, typically measured in days.