Entrepreneurs Face a Fixed Cost to Found New Firms

question 30

Multiple Choice

Entrepreneurs face a fixed cost to found new firms. When this cost is amortized,the expected returns to founding a firm are _____ in a larger market than in a smaller market.

• A) greater.
• B) smaller.
• C) more stable.
• D) more unpredictable.
• E) more predictable.

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Definitions:

Other-directedness

A personality orientation where an individual's behavior, thoughts, and beliefs are influenced heavily by external approval or social cues rather than personal values.

Problematic Emotions

Feelings or emotional states that cause distress or difficulty in functioning.

Socio-political Factors

Aspects that involve both social and political elements, influencing and shaping the behavior of individuals and societies.

Culturally Sensitive

An approach that is aware of and respects the differences between cultures, ensuring relevance and effectiveness.