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:

Information Technologies

The study or use of systems (especially computers and telecommunications) for storing, retrieving, and sending information.

Organizational Tasks

Specific duties or responsibilities assigned to employees or departments within an organization, contributing to its overall goals.

Sophisticated Information Technologies

Advanced systems and applications designed to facilitate the creation, processing, storage, and exchange of information.

Sabotage

Deliberate actions aimed at damaging or obstructing the operations, reputation, or interests of an organization by insiders or competitors.