Capital-Constrained Entrepreneurs Cannot Afford to Do Much Prior Analysis and Research

question 55

Multiple Choice

Capital-constrained entrepreneurs cannot afford to do much prior analysis and research because

• A)the affordability of properly conducted research is beyond the means at their disposal.
• B)the costs of any mistakes are lower than the risks of missing out on opportunistic actions.
• C)the limited profit potential and high uncertainty of the opportunity they pursue may make the benefits low compared to the costs.
• D)potential competitors could quickly discern the entrepreneurs' intentions and motives from their research.

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Definitions:

Reconstructions

Refers to the period following the Civil War during which the Southern states were rebuilt and reintegrated into the Union.

Civil War

A conflict between different groups within the same country, often characterized by intense violence and lasting societal impacts.