Final answer:
Acquisition offers rapid entry into a new industry with established operations, brand value, and customer base, which can minimize financial risk compared to building a new presence from scratch.
Step-by-step explanation:
Acquisition can be an attractive approach to diversifying into another industry mainly due to rapid entry into the new industry. By acquiring an existing company, a business can quickly gain access to new markets and customers, as well as established operations. This faster entry is often more appealing than building a presence in a new industry from the ground up. Additionally, acquisitions provide a business with established brand value and a customer base, such as acquiring a business with a well-respected brand name that has been carefully built up over many years. While it's true that acquisitions involve integration challenges, such as merging different corporate cultures and systems, these are typically anticipated and managed as part of the acquisition process. Therefore, the potential for minimizing financial risk and achieving rapid diversification often outweighs the integration challenges that accompany an acquisition.
Answer: b) Rapid entry into the new industry