An Example of an Idea for a New Startup from a Hobby

question 18

Multiple Choice

An example of an idea for a new startup from a hobby is

• A)a coin collector,who bought and sold coins for years to build a personal collection,deciding to become a coin dealer.
• B)a furniture salesperson seeing the possibility of opening a new furniture store in a different area of the city.
• C)a sharpshooter,who shot holes in a pair of her boyfriend's jeans during an argument,hearing him get complimented on the way they look.
• D)all of the above are examples.

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Definitions:

Law of Diminishing Returns

A principle stating that if one factor of production is increased while other factors are held constant, the marginal product of the increased factor will eventually decrease.

Moral Hazard

A situation where one party takes risks because they know they will not have to bear the full consequences of their actions.

Divorce Insurance

A type of financial product designed to provide financial protection to individuals in case of a divorce, typically by paying a lump sum.

Marital Problems

Issues or conflicts arising between spouses that can affect the stability and health of the marriage.