Apple Inc's Decision to Acquire Beats Electronics and Beats Music in in 2014

question 58

Multiple Choice

Apple Inc.'s decision to acquire Beats Electronics and Beats Music in 2014 for $3 billion rather than enter into a joint venture with that company was an attractive strategy option for entering a promising new industry in headphones and streaming music services because it

• A)was an effective way to hurdle entry barriers,was quicker than trying to launch a brand-new start-up or joint venture operation,and allowed Apple Inc.to move directly to the task of building a strong position in the target industry.
• B)offered Apple Inc.the prospect of gaining an immediate competitive advantage in the new industry and thus helps ensure that the diversification move could pass the competitive advantage test for building shareholder value.
• C)was less expensive for Apple Inc.than launching a new start-up operation,thus passing the cost-of-entry test.
• D)was more likely to result in Apple Inc.'s passing the shareholder value test,the profitability test,and the better-off test.
• E)would have entailed divulging sources of competitive advantage such as trade secrets,confidential financial information,and proprietary processes that Apple is unwilling or unable to share.

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The bones that form the skull, protecting the brain and supporting the structures of the face.

Frequently Used Test

A test or examination that is administered regularly due to its proven utility in evaluating a specific trait or condition.

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CT Scan

A medical imaging procedure that combines multiple X-ray measurements to create detailed cross-sectional images of the body.