Question

Internal development of a new business subsidiary can be a more attractive means of entering a desirable new business than is acquiring an existing firm already in the targeted industry when A. the company has ample time and adequate resources to launch the new internal startup business from. the ground up. B. there is a large pool of desirable acquisition candidates. C.the target industry is growing rapidly and good joint venture partners are available. D. all of the potential acquisition candidates are losing money. E. the target industry is comprised of several relatively large and well-established firms.

Answer 1

A. the company has ample time and adequate resources to launch the new internal startup business from. the ground up

Step-by-step explanation:

Businesses consider factors like time and available resources to pursue projects. This is in an effort to ensure continuous flow of profit.

When a company wants to enter into a new industry it has the option of either buying an existing firm in that industry or developing a firm internally to break into the new industry.

Buying an existing company will save time and profits can start flowing immediately. It can also be a cheaper option.

Internal development of a firm to enter the industry will take more time to establish, and also more resources to build from the ground up.