Which One of the Following Is Not a Factor That

question 85

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 consists 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:

Financial Statements

Reports that provide detailed information about a company's financial performance, including balance sheets, income statements, and cash flow statements.

Common Law Fraud

A cause of action under tort law that involves misrepresentation, deceit, or concealment by one party to induce another to part with something of value or surrender a legal right.

Privity

The relationship between parties that is necessary for the enforcement of contracts, ensuring that only parties involved in the contract can sue or be sued under its terms.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, presenting a structured report of financial performance over a specific period.