In the Context of Risks to New Businesses, Identify a True

question 29

Multiple Choice

In the context of risks to new businesses, identify a true statement about risk tolerance.

• A)What constitutes a risk is determined by an entrepreneur by observing his or her own tolerances.
• B)Risks must be determined by entrepreneurs based on the findings of focus groups with other entrepreneurs in the same industry.
• C)In new markets, entrepreneurs must be willing to put up with risks that outweigh their personal risk tolerance.
• D)Entrepreneurs can avoid a majority of the risks associated with new start-ups by allowing competitors to invest in their new businesses.

---

Definitions:

Ironing Boards

Flat, foldable boards used as a stable surface for ironing clothes and linens.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at a particular price level, reaching a state of market balance.

Equilibrium Price

The economic value where the quantity of goods brought to the market equals the quantity taken by consumers.

Technological Advancement

The process of innovation and improvement in technology, leading to more efficient production methods and new products.