Which of the following statements regarding internal development as a means of diversification is FALSE?
A) Many companies use internal development to extend their product or service offers.
B) An advantage of internal development is that it is generally faster than other means of diversification and firms can benefit from speed in developing new products and services.
C) The firm is able to capture wealth created without having to share the wealth with alliance partners.
D) Firms can often develop products or services at a lower cost, if they rely on their own resources instead of external funding.

Question

Quizplus · Accepted Answer

Potential disadvantages to internal development include that it may be time consuming and that firms may forfeit the benefits of speed that growth through mergers can provide. This may be important to high-tech or knowledge-based organizations in fast-paced environments in which being an early mover is critical.

Which of the Following Statements Regarding Internal Development as a Means