Diversifying into a New Industry by Forming a New Internal

Diversifying into a new industry by forming a new internal subsidiary to enter and compete in the target industry is attractive when:

A) all of the potential acquisition candidates are losing money.
B) it is impractical to outsource most of the value chain activities that have to be performed in the target business/industry.
C) there is ample time to launch the new business from the ground up and entry barriers can be hurdled at acceptable cost.
D) the company has built up a hoard of cash with which to finance a diversification effort.
E) none of the companies already in the industry are attractive strategic alliance partners.