In Order to Be Successful, a New Entrepreneurial Enterprise Should

question 47

True/False

In order to be successful, a new entrepreneurial enterprise should be sheltered from the global environment until it is firmly established in domestic markets.

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Definitions:

Nondiversifiable Risk

Risk factors common to the whole economy; also called market risk or systematic risk.

Diversifiable Risk

The risk associated with individual investments that can be reduced through diversification by investing in a variety of assets.

Unique Risk

Risk that is specific to a single asset or to a small group of assets, also known as unsystematic risk.

Unique Risk

Also known as unsystematic risk, it refers to the risk associated with a specific company or industry.