In What Stage Do New Ventures Exhibit a Failure Rate

question 17

Multiple Choice

In what stage do new ventures exhibit a failure rate exceeding 60 percent; that is, in what stage do the lemons ripen?

• A) R&D
• B) Start-up
• C) High-growth
• D) Maturity
• E) Stable

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Definitions:

Pooling Agreement

An agreement made by shareholders whereby they promise to vote the same way on a particular issue. Also called shareholder agreements and voting agreements.

Breach of Contract

The failure of one party to fulfill any of its contractual obligations without a valid legal reason, leading to possible legal action by the other party.

Chemical Plant

An industrial facility where chemical processes are carried out, especially the manufacture of chemicals or pharmaceuticals.

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, protecting them from personal liability for the corporation's debts and obligations.