a diversifying company might enter an attractive market by way of an acquisition instead of by internally developing a new business because

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Option d.) all of the above favor an acquisition over internal development is the correct answer because, diversification is a growth strategy that involves entering new markets or industries, and might enter an attractive market by way of an acquisition instead of by internally developing a new business.

Diversification is a risk mitigation strategy used by companies to expand into new markets and industries to increase profitability. This can be achieved by diversifying new products and services into new markets, targeting new customers and increasing profitability. The stronger the ties between sister companies in a diversified company, the greater the opportunity for the company to leverage its strategic advantage and transform strategic fit into competitive advantage.

A diversified portfolio requires a wide mix of investments. Diversification helps reduce the risk in such scenarios by choosing different investments and investment types.

Here is the complete question-

A diversifying company might enter an attractive market by way of an acquisition instead of by internally developing a new business because

a.it can do an end-run around the barriers to entry.

b.it can avoid the costs and uncertainty inherent in building a new business.

c.an acquisition gets the company into the market much more quickly.

d. All of the above favor an acquisition over internal development.

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