Apple Inc.'s decision to acquire Beats Electronics and Beats Music in 2014 for $3 billion rather than enter into a joint venture with that company was an attractive strategy option for entering a promising new industry in headphones and streaming music services because it
A) was an effective way to hurdle entry barriers,was quicker than trying to launch a brand-new start-up or joint venture operation,and allowed Apple Inc.to move directly to the task of building a strong position in the target industry.
B) offered Apple Inc.the prospect of gaining an immediate competitive advantage in the new industry and thus helps ensure that the diversification move could pass the competitive advantage test for building shareholder value.
C) was less expensive for Apple Inc.than launching a new start-up operation,thus passing the cost-of-entry test.
D) was more likely to result in Apple Inc.'s passing the shareholder value test,the profitability test,and the better-off test.
E) would have entailed divulging sources of competitive advantage such as trade secrets,confidential financial information,and proprietary processes that Apple is unwilling or unable to share.
Correct Answer:
Verified
Q7: To create value for shareholders via diversification,
Q10: Diversification ought to be considered when a
A)company's
Q11: Acquisition of an existing business is an
Q12: The cost-of-entry test for evaluating whether diversification
Q13: A joint venture is an attractive way
Q14: The better-off test for evaluating whether a
Q16: Which one of the following is not
Q17: Diversifying into a new industry by forming
Q19: Which of the following statements about corporate
Q20: The task of crafting a company's overall
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