New Ventures Are Likely to Be Preferred Compared to Acquisitions

Multiple Choice

New ventures are likely to be preferred compared to acquisitions when:

A) entry barriers are high.
B) exit barriers are high.
C) a company's business model is based on using its technology to innovate new kinds of products for related markets.
D) it needs to move fast to establish a presence in an industry, commonly an embryonic or growth industry.
E) the company must make the huge investment necessary to develop the set of value-chain activities required to make and sell products in the new industry.