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:

Low-Cost Strategy

A strategy that helps companies succeed through efficiencies and by reducing costs.

Growth Strategy

Approaches or plans implemented by a business or organization aimed at expanding its operations, increasing market share, or achieving higher revenues.

Profitable Growth

An increase in revenue that exceeds costs and expenses, resulting in a net gain for the business.

Financial Losses

The negative financial impact experienced by a business or individual when expenses surpass income or when assets depreciate in value.