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.

Question

Quizplus · Accepted Answer

New ventures are preferred when a company's business model focuses on innovation and leveraging its technology to create new products for related markets, as this allows for more flexibility and alignment with the company's core competencies.

New Ventures Are Likely to Be Preferred Compared to Acquisitions