Which of the following is a disadvantage of new venture divisions?
A)They might eventually increase the cost structure of the company.
B)They require skill and resources from other companies.
C)They cannot have a business model of their own.
D)They are within a company's existing structure under the scrutiny of its corporate managers.
E)They make it mandatory for the firm to use strict output controls.

Question

Quizplus · Accepted Answer

New venture divisions may eventually increase the cost structure of the company, as they require significant investments and resources to become established. This can impact the profitability of the company as a whole. The other options presented are not necessarily disadvantages of new venture divisions.

Which of the Following Is a Disadvantage of New Venture