One benefit of external expansion is:

Question

Quizplus · Accepted Answer

External expansion through acquisition or joint ventures can help to reduce potential problems associated with greenfield entry, such as unfamiliarity with local regulations, lack of local contacts, and the need to build a new infrastructure from scratch. Option A is incorrect as acquirers are unlikely to be able to purchase a firm at a substantial discount from market value if the firm has growth potential. Option B is also incorrect as external expansion through acquisition or joint ventures can be quicker than Greenfield entry. Option D and E are both incorrect as only option C is a benefit of external expansion.

One Benefit of External Expansion Is